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MEXICO UNDER CARRANZA 



MEXICO UNDER 
CARRANZA 

A Lawyer's Indictment of the Crown- 
ing Infamy of Four Hundred 
Years of Misrule 

BY 
THOMAS EDWARD GIBBON 




Garden City New York 

DOUBLEDAY. PAGE & COMPANY 

1919 



• ^ 



'- 



COPYRIGHT, 1 91 9, BY 

DOUBLEDAY, PAGE & COMPANY 

ALL RIGHTS RESERVED, INCLUDING THAT OF 

TRANSLATION INTO FOREIGN LANGUAGES, 

INCLUDING THE SCANDINAVIAN 




3CI.A515455 



DEDICATION 

To THE submerged eighty per cent, of the Mexi- 
can people — the peons — who, for four hundred 
years, have been the victims of an industrial 
slavery almost without parallel in history, and to 
those who have been their greatest friends and 
benefactors in that dark period, the heroic Ameri- 
can pioneers who, at the risk, and oft-times at 
the cost, of their lives, have invaded the mountains, 
deserts, and jungles of Mexico to discover and 
develop the hitherto unknown natural resources 
of that country for the benefit of its workers and 
of civilized mankind. 



PREFACE 

How are the people of Mexico faring under 
Carranza? 

What is the character of the Carranza adminis- 
tration? 

Are our relations with the present Mexican 
Government satisfactory or otherwise? 

How have Americans resident in Mexico been 
treated? 

What are the facts about investments of Amer- 
icans and other aliens and what relation have 
these investments borne to the country's economic 
welfare? 

How have the Carrancistas treated these invest- 
ments? 

What is the underlying cause of the woes that 
have beset the Mexican people since they began 
experimenting with self-government nearly a 
century ago? 

Is there a remedy for these evils — any hope for 
the future? 

vii 



viii PREFACE 

In- the following pages an attempt has been 
made, after earnest and prolonged investigation, 
to answer these questions fully, frankly, without 
passion and without prejudice. 

Thomas Edward Gibbon. 
Los Angeles, Ca!., 
January, 1919. 



CONTENTS 

PACE 

Preface vii 

Chapter I 

How the People of Mexico Have Fared Under 
the Carranza Regime 3 

Chapter H 

Character of the Carranza Revolutionary 
Party Constituting the Recognized Gov- 
ernment of Mexico — The Relations Estab- 
lished with the United States and the Rest 
of the World 42 

Chapter HI 

Character of Foreign Investments in Mexico. 
Particularly Those of Americans — Rela- 
tions of These Investments to the Eco- 
nomic Condition of the Country — Dealings 
Between Foreign Investors and the Mexi- 
can Government 93 

Chapter IV 

How the Carrancistas Have Treated the In- 
terests of Foreign Investors . . . . 147 

ix 



CONTENTS 
• Chapter V 

PAGE 

Causes of the Evils Which Have Afflicted the 
Mexican People Since Their Existence as a 
Self-Governing Nation Began in 182 1 — 
The Remedy 194 

Appendix I 

The General Law for the Construction of 
International and Interoceanic Railways . 239 

Appendix II 
Union and Central Pacific Railroads . . 245 

Appendix III 

Revised List of American Citizens Killed in 
Mexico by Armed Mexicans During the 
Revolutionary Period Between December, 
1 9 10, and September I, 1 9 16 .... 248 

Appendix IV 

List of 61 Outrages Committed in the Oil 
Regions of Mexico Alone in a Period of Six 
Months and Eight Days 263 



MEXICO UNDER CARRANZA 



MEXICO UNDER CARRANZA 

CHAPTER I 

How the People of Mexico Have 
Fared Under the Carran^a Regime 

CARRANZA'S regime was recognized by 
the United States October 19, 191 5, as 
the de facto, and nearly three years later 
as the de jure, government of Mexico. That is 
to say, this nation on the former date gave notice 
to all the world that, waiving consideration of its 
legal status, the administration set up by Carranza 
was in fact the government of Mexico, having the 
power and the inclination to perform all the func- 
tions of a government in relation to its own people 
and to fulfil all international obligations. Recog- 
nition as the de jure government was nothing less 
than an oificial notification to the family of nations 
that Carranza's administration was legally consti- 
tuted and that it possessed both the lawful power 
and the inclination to discharge its obligations 
toward its own people and all the rest of the world. 
Having been the recognized authority for about 
four years the Carranza Administration may be 



4 MEXICO UNDER CARRANZA 

deemed to have had time to demonstrate its fitness 
to govern. While Mexico has never been free^ 
from revolutionary disturbances during this period, 
and not all the national territory has acknowledged 
Carranza's authority, a survey of present condi- 
tions should give a fair idea of the character and 
capacity of the Carrancistas and of what may be 
expected of them in the future. 

The Mexican people being more vitally con- 
cerned than any one else their case should be con- 
sidered first. To characterize their condition 
in a sentence, their existence for the last four years 
has been an unbroken crescendo of accumulating 
woes. Carranza and his adherents have destroyed 
the material prosperity of the country; have robbed 
the people to whom that prosperity was due of 
hundreds of millions of dollars; have reduced 
hundreds of thousands of their countrymen, once 
happy and contented workers in great industrial 
enterprises, to starvation; have dragged Mexico 
down to a depth of degradation and misery without 
a parallel even in the gloomy history of that un- 
happy country. 

The Carrancistas' superlative power for evil is 
easily explained. Previous to the Diaz era the 
Mexican people were chiefly engaged in farming 
and stock raising, only to a limited extent in 
mining, and hardly at all in manufacturing indus- 
tries. The looting and confiscation, always a 



MEXICO UNDER CARRANZA 5 

conspicuous feature of revolutionary activities, 
therefore, affected but little the daily life of the 
common people because they produced all the 
food they needed; and the population being very 
much less than it now is, starvation, or even hun- 
ger, did not often result from these frequent dis- 
turbances. 

The outstanding achievement of Diaz in the 
thirty-four years that he guided the destinies of 
the nation was a tremendous development of 
public service works, such as railroads, street 
railways, telephone and telegraph systems, gas 
works and manufacturing industries of various 
kinds, mining and smelting. The result was a 
marked change in the economic life of the country. 
Under the stimulus of ample employment and 
wages very much higher than ever before known, 
the population quite doubled during the Diaz 
period, much of the increase being concentrated 
in the cities which had become the centres of 
industry. Instead of the great majority of the 
population raising its own food, therefore, hun- 
dreds of thousands of laborers were engaged in 
activities that produced no food at all for them- 
selves and their families. When the Carrancistas 
destroyed the nation's public service and indus- 
trial enterprises this great working population 
was reduced to idleness; and being without re- 
sources was forced to submit to starvation or 



6 . MEXICO UNDER CARRANZA 

seek a precarious livelihood by joining the preda- 
tory bands that scour the country. 

No one ever will know how many thousands of 
helpless women and children, to say nothing of 
able-bodied men, actually starved to death as a 
result of this almost complete stoppage of indus- 
trial activity. A prominent Mexican has esti- 
mated that not fewer than ten thousand persons 
have starved to death in Mexico City alone in the 
last four years. This is merely an informed 
opinion, to be sure; but beyond any question many 
thousands of these poor people have died of hunger 
while yet other thousands of lives have been lost 
as the result of privations and unsanitary condi- 
tions directly attributable to the lawless conduct 
of the dominant party. The epidemic of Spanish 
influenza swept through the country last fall, 
taking frightful toll because after enduring penury 
and want for so long the people lacked the stamina 
to resist disease. 

Not satisfied with merely taking the bread out 
of the mouths of so many of their countrymen, the 
Carrancistas with a refinement of cruelty next 
deprived them even of the meagre dole of charity. 
No doubt many readers will recall the fact that 
in the latter part of 191 5 the American Red Cross, 
which has earned the admiration of the world by 
its noble work in stricken Europe, which had been 
ministering to the needs of thousands of destitute 



MEXICO UNDER CARRANZA 7 

and starving Mexicans, was expelled from the 
country by Carranza. This astounding deed 
and its consequences are described in the Red Cross 
Magazine, the official journal of the organization, 
for November 15, 191 5, from which the following 
extracts have been taken 

"At the request of General Carranza, and with 
the advice of the American Department of State, 
which was consistent with the request, the Ameri- " 
can Red Cross discontinued its relief activities in 
both southern and northern Mexico October 8, 
and Special Agents Charies J. O'Connor and J. C. 
Weller, whose enterprise, hardihood, and efficiency 
in relieving the starving populace had brought 
them much praise, have been withdrawn. As it 
developed, the State Department advice in 
advocacy of the withdrawal of the Red Cross 
representatives presaged the formal recognition of 
the Carranza organization. Announcement of the 
decision to recognize General Carranza and his 
forces was made October 9th. [The recognition 
as the de facto government of Mexico is referred 
to.] 

"At this time, just as was the case the month 
previous, many deaths were occurring daily from 
starvation and the country as a whole was in a 
pitiable plight, economically and industrially. It 
has been devastated from end to end and so im- 
poverished and demoralized that under the most 
favourable conditions it would be possible only 
slightly to alleviate the widely extended suffering 
which will be forced upon the Mexican people dur- 



8 MEXICO UNDER CARRANZA 

ii>g the ensuing winter. General Carranza's as- 
surance that the situation would be cared for, 
therefore, has not wholly dispelled the feeling of 
sincere regret on the part of the American Red 
Cross over relinquishing its part of the relief work. 

"It is hard, for instance, to leave a locality 
where many thousands of families, mothers and 
babes predominating, have been absolutely depend- 
ent for sustenance upon small portions of nourish- 
ing vegetable soup which we had daily distributed. 
Half-famished mothers with skeleton babies at their 
breasts have besought the Red Cross agents, in the 
name of all that is holy, to do something for their 
little ones — to save them if they could not save the 
mothers — and there have been many formerly 
well-to-do persons, not of the peon class, who have 
been among the pitiful petitioners for Red Cross 
aid. 

" In Mexico City alone, under the very compe- 
tent direction of Mr. O'Connor, a chain of free 
soup stations was operated for over a month and 
26,000 families were supplied daily at the height of 
the distribution. IVhole families were rescued from 
the necessity of trying to stomach the putrefied flesh of 
domestic animals found in the streets of Mexico City. 
Peon families could desist for a short time from 
picking up morsels of waste food from the rubbish 
heaps. They could leave off the role of human car- 
rion crows amid the offal of the slaughter-houses . 

" Thousands of families in Monterey, Monclova 
and Saltillo were given a little respite from a diet of 
prickly or cactus pears, mesquite beans and other 
wild products of northern Mexico prairies, where 
Special Agent Weller, like Mr. O'Connor, endeared 



MEXICO UNDER CARRANZA 9 

himself to the civilians and took many personal 
risks in their behalf." 

In a ref)ort from a Red Cross Agent on file in the 
State Department at Washington appears the fol- 
lowing: 

" In conclusion, I only regret that some of our 
higher-up government officials could not have 
been with me to see the brand of individuals that 
are now in control of the situation in Mexico. They 
do not represent any of the good element in Mexico. 
They are lawless and have no more idea of patriot- 
ism than a yellow dog. They are mentally incap- 
able of handling the situation. General Elisondo, 
in command at Monclova and also in command of 
a district larger than Massachusetts, is a boy of 
tv/enty-four years, uneducated and absolutely ir- 
responsible. General Zuazua, formerly classed as 
a saloon bum around Eagle Pass, a Lieutenant- 
Colonel in command of a territory as big as Rhode 
Island, was sent to the Mexican army some fifteen 
years ago, having been arrested for stealing horses 
and cattle. These are not the exceptions but the 
rule of the character of the men who now dominate 
one of the largest states in northern Mexico. 

"This fact is largely due to Carranza, who has 
allowed them to do as they please and they have 
no respect whatever for him, each man ruling his 
district as he sees fit. 

" I do not find any difference between the Car- 
ranza faction and the Villa faction, with the excep- 
tion that Pancho Villa seems to have a better con- 
trol of his men. * * * 



10 , MEXICO UNDER CARRANZA 

'" Having been in personal contact with both fac- 
tions, I believe that it would be a crime to turn 
loose this some 200,000 bandits, thieves, and 
scapegoats on the country. They are rotten with 
disease and have been divorced from all ideas of 
ever working again/' 

// is well to hear in mind that the authors of the 
foregoing statements have no financial interest in 
Mexico, Tbey were made by the representatives of 
the Red Cross, whom Carran^a banished because he 
did not wish the world to know through them the 
desperate condition to which he had brought his 
country. 

In a speech made m the Senate of the United 
States June 2, 1916, Senator Fall, of New Mexico, 
stated that records on file in the Department of 
State showed that, at the very time when our 
Red Cross was feeding 26,000 families a day in 
Mexico City, the capital of the nation, 

"Venustiano Carranza himself, or through ad- 
herents, shipped 37,000 tons of food stuffs through 
the port of Vera Cruz alone and got the golden 
dollars for it and put them in his pocket. 

" I myself saw three carloads of potatoes, the last 
shipped out from the Guerrero District by Mexican 
officials and sold at El Paso, Texas, to put gold 
into their own pockets, while the people who 
raised these potatoes were living on roots or dying 
of starvation. If our Government does not know 



MEXICO UNDER CARRANZA ii 

these conditions, it is because its officials will shut 
their eyes and their ears." 

This statement has never been challenged and 
it is so much of a part with other things that have 
been done by the Carranza party as to be entirely 
worthy of belief. 

That the terrible condition of the masses of 
Mexicans depicted in the reports of Red Cross 
officials, quoted, still continues is shown by an 
article published in the New York Sun January 
29, 191 8. The article is introduced by a statement 
from the Editor of the Sun which says : 

"In view of the many conflicting reports that 
have come out of Mexico since the United States 
declared war on Germany, the Sun sent a trained 
investigator into Mexico from Vera Cruz. His 
instructions were to be impartial and unbiased in 
his views and to depict the situation exactly as it 
is/' 

In the article in question the investigator of the 
Sun says: 

" Mexico City is full of starving Indians, insuffi- 
ciently clad and with no shelter to protect them- 
selves at night to escape the icy winds that sweep 
down from the encircled snow-clad mountains when 
the sun goes down. They huddle together for 
warmth on recessed doorsteps, passing the bitter 
night in a physical state that must somewhat ap- 



12 MEXICO UNDER CARRANZA 

prpach that of the hibernating bear, and in the 
morning they crawl into a sunny place and slowly 
thaw into life again, when they get up and resume 
their pathetic quest for food. They mutely appeal 
with outstretched hands and wistful eyes to the 
passer-by, and there are legions of them." 

' These conditions exist at the present time. A 
gentleman who had been in business in Mexico 
for some ten years prior to the beginning of the 
Carranza regime, who had travelled much through- 
out the country, returned there late last fall, to 
ascertain what present conditions were. He 
visited Mexico City and other points. I know 
this gentleman well, and can, therefore, vouch 
for his high character, and reliability. This is 
the substance of what he told me: 

** I spent several weeks in October and Novem- 
ber, 1 918, in and around Mexico City, a locality 
I have known intimately for years. One evening 
I took a walk for the purpose of seeing what condi- 
tions were among the poor. I am sure that on that 
walk I saw at least three thousand miserable per- 
sons crouching in recessed doorways and other 
places that offered some slight protection from the 
wind. They were lying as close together as they 
could get, often with a dog in the centre of the pile 
to contribute the warmth of its body. They were 
men, women, and children. Most of the latter 
were naked, though a few had a ragged, dirty rem- 
nant of a coat or pair of trousers or, perhaps. 



MEXICO UNDER CARRANZA 13 

merely a piece of dirty cloth. The older persons 
were dressed in rags. In all the years 1 have 
known Mexico City I had never before seen such a 
sight. 

"While in the city I met a Mexican gentleman 
who owned a large hacienda in the state of Guana- 
juato. He told me that in order to provide some 
employment for the people on his estate to keep 
them from starving he decided to have an improve- 
ment made which would keep a couple of hundred 
men, which was all the unemployed there were on 
the place, busy for some time. The news spread 
quickly that work was to be had on the hacienda, 
which was promptly stormed by an army of idle and 
hungry men. Not fewer than seven thousand men 
applied for work on a job that was only meant as a 
makeshift to provide bread for two hundred. 
Some of these applicants were so reduced by priva- 
tion and want that they died on the ranch, having 
used their last remaining strength to reach what 
they hoped was a chance to work.*' 

It should be borne in mind that these wretched 
creatures represent the ''people'' of Mexico; the 
peon population whose support the Carranza 
leaders sought and secured by promises to make 
conditions of life easier for them than they ever 
had been under former governments. 

Some time ago newspapers in Mexico City an- 
nounced that a small revolution had been started 
by the farmers in the State of Michoacan because 
the commanders of Carranza troops had confis- 



14 MEXICO UNDER CARRANZA 

cated the food the farmers had raised, and had 
sold it. This very thing has been done in numer- 
ous instances throughout Mexico by the repre- 
sentatives of the Carranza Government as was 
stated by Mr. Cabrera in a newspaper article 
quoted in another chapter. 

It would be surprising if the members of the 
Carranza Government, who have shown such dis- 
honesty in their dealing with private possessions, 
should refrain from exhibiting the same spirit in 
dealing with public property. That they have 
observed no such restraint is shown by many in- 
stances of the dishonesty of public officials that 
have come to light. 

On October 25, 19 17, an editorial appeared in 
El Universal, the leading daily of Mexico City, 
which said in part : 

"The transcendental depth of the bad railway 
communications with the consequent uncertainty 
of transport of passengers and merchandise con- 
tinues to be one of the gravest problems to settle. 
Every little while assaults and blowings up of 
freight trains occur. The scarcity of rolling stock 
continues and more than anything else, the im- 
moral exploitation of the railways by employees 
and military chiefs continues . The most important 
route which connects our first port with the capital 
of the republic, the route by which the greater 
part of our exportation leaves and through which 
almost all imported products from Europe come, is 



MEXICO UNDER CARRANZA 15 

the least safe right now. By what perfected tele- 
pathy, or by what arts of marvellous intuition, do 
bombs explode exactly under the trains filled 
with the richest and most abundant of high-priced 
goods? 

"These distressing reflections come up again to 
our mind when we remember the strange circum- 
stances of the destruction of the freight train 
blown up a short time ago near Atoyac. The loco- 
motive was drawing a car of paper belonging to 
this newspaper; another, the property of the Na- 
tional Paper Company; a car full of condensed 
milk; others with valuable cloths, etc. It appears 
there was not a single death in the derailment and 
from data received up to now, it is known that the 
rebels got little or no result from their attack. We 
know very little about the fortune of the freight 
which came in this train consigned to various busi- 
ness houses of this capital. As to our 1 1 5 rolls of 
paper, we have been informed that they were trans- 
ported almost intact to the city of Vera Cruz by a 
secondary military authority and sold there to mer- 
chants without conscience who bought them, 
knowing the crime they were committing. We 
have proof, for our special representative was 
present at the investigation ordered by the 
Governor of Vera Cruz, that the responsibility 
is all upon the military authorities of the 
port. 

" If the public peace requires it, it is well that 
individual guarantees be suspended in all the 
country; but, if the military authorities are going 
to have full power, what will proprietors, merchants, 
industrial people do when their goods and sup- 



i6 MEXICO UNDER CARRANZA 

plies are improperly sequestered? May a Major 
Chief of the Line, or a General Chief of Garrison, 
dispose of private property without the owner having 
the right to protest ?" 



It will be noted'that the editor who thus com- 
plains of having been robbed by the military au- 
thorities at Vera Cruz of his 1 15 rolls of paper does 
not say that he recovered his property or that 
any one was punished for the theft. 

I have a friend who, for many years before the 
Carranza party came into power, was engaged in 
a business enterprise in the City of Mexico for 
which he imported supplies in carload lots through 
Vera Cruz. The business which he conducted was 
one of considerable advantage to the city and to 
the Mexican people. 

Some time ago I met this friend in this country 
where he is now making his home. He said, and 
his high character guarantees the truthfulness of 
his statement, that shortly after the Carranza 
party secured control of the line of railway be- 
tween Vera Cruz and the City of Mexico, he was 
required by the management to pay $300 per car, 
in addition to the regular freight rate, before he 
could secure delivery of his freight. After his 
cars started from Vera Cruz they would disappear 
somewhere on the line and, before he could get 
them delivered, he would be forced to pay the 



MEXICO UNDER CARRANZA 17 

bribe demanded by the operating force of the 
railway. The amount of bribe money per car 
increased until at last he was met with' the de- 
mand for $1,600 in order to secure* delivery of a 
car of freight. This he paid and then closed up 
his business and left the country, as he found it 
impossible to continue under such exactions. 

El Excelsior, a daily newspaper published in 
Mexico City, in its issue of November 28, 19 17, 
contained the following: 

"Under the pretext of modifying the law of 
organization of departments of government, 
Deputy Reynoso began yesterday in the Cham- 
ber of Deputies a sensational debate, brilliantly 
ended by Sanchez Ponton, on the economic man- 
agement of the railways. According to these and 
other orators, the railway officials have made their 
hay to the damage of the public, of the nation, and 
of the credit which we used to have in foreign parts. 
The orator referred to the deal for the sale of waste 
material made a short time ago and says that he 
can prove that two-thirds of the iron and steel 
sold was new and perfect. Furthermore, he reads 
a statement of from January to June, 19 17, accord- 
ing to which there were 238 railway accidents due 
to negligence of the employees and the neglect of 
old track repairment by Pescador, Director General 
of Railways. 

"The Secretary read documents to prove that 
baggage and other railway matters are controlled 
by a brother-in-law of Pescador from which damage 
and delays of passengers result. * * * 



i8 MEXICO UNDER CARRANZA 

"-Sanchez Ponton read the contract made be- 
tween Pescador and the Senator General Nafaratte 
for the sale of so-called waste material at $io per 
ton and observes that the business was so good for 
the purchasers that the same Senator Nafarette 
ceded his rights for four pesos per ton and that the 
two gentlemen who figured as accomplices in the 
operation did the same thing. 

"He continues making charges against certain 
other people on account of divers contracts as bad 
as that just cited and especially refers to one in 
which 70 pesos per ton was paid for steel belonging 
to the national railways." 

El Universal of the same date, in its account of 
the proceedings in the Mexican Congress, contains 
the following: 

"Among other charges by Deputy Reynoso 
made against Pescador, the worst is relating to a 
sale of a great lot of so-called old iron at J 10 per 
ton when he states the fact is that three-fourths of 
this iron was new iron and that in it were 180 
wheels and axles from Monterey." * * * 

" Deputy Ponton read a copy of a contract made 
between Senator General Nafaratte and Messrs. 
Salazar and Maples, by means of which the first 
of said gentlemen transferred his rights to the 
second in a purchase made from the constitutional- 
ist railways of 20,000 tons of old iron at $10 per ton. 
Nafaratte charged 4 pesos for each ton as a profit in 
the transfer. Later Ponton read a copy of the 
Certificate of Incorporation of the company organ- 
ized by a brother of the railway auditor, the first 



MEXICO UNDER CARRANZA 19 

assistant to the director and the treasurer of the 
company, a company dedicated, as the confession 
in its circulars states, for the purpose of furnishing 
freight cars to those who need them. 

" He also cited a deal for the sale of rails at 70 
pesos per ton when they cannot at present be pur- 
chased at 140 pesos and said that payments were 
not received in money but in very bad and very 
costly ties. 

" He also states that when metallic money began 
to circulate again, the great majority of railway 
employees were paid a determined amount in notes 
for a stated period; certain persons bought these 
notes at a discount of 25, 50,60, and even 75 per cent, 
and when almost all of the notes had been cornered, 
the order was given to pay them, from which an 
enormous amount of money was made." 



We thus see that General Nafaratte, one of the 
most prominent members of the Carranza ad- 
ministration, in a deal made for government prop- 
erty, secured a profit amounting to 4 pesos per ton 
on 20,000 tons of iron by merely permitting his 
name to be used, and that it was freely charged in 
the Mexican Congress that the poor employees of 
the national railways had been speculated upon 
to a shameful extent in the payment of their wages 
by the government. 

It is commonly said in Mexico that the Villa 
and Zapata forces operating against Carranza 
secure their ammunition, and sometimes their 



20 MEXICO UNDER CARRANZA 

arms-, by purchase from the commanders of the 
Carranza troops. On November 2, 19 17, El 
Universal contained the following from a corres- 
pondent at Puebla under date of October 31 : 

"The Chief of the military operations in the 
state has decided to open proceedings against the 
chiefs of forces in charge of the garrisons near the 
zone not yet controlled by the government, who are 
accused of the very grave crime of being in con- 
nivance with the enemy to whom they furnish 
war supplies in exchange for articles easily sold 
which the Zapatistas introduce to the regions in 
which they operate. 

" The accusations made to the superior military 
authorities were made by members of the Mexican 
brigade * Hidalgo/ which was under the orders of 
General Segura and which now is converted into a 
regiment. Officers and troops of said corps in- 
formed General Villasenor that Col. Patrinos and 
Lieutenant Colonel Torres, chiefs of forces operat- 
ing in the Atlixco District, had established a crim- 
inal trade with the Zapatistas marauding around 
said city; the trade consisting in the interchange 
of hides and copper, products of Zapata raids, for 
ammunition and other war supplies which the 
supreme government puts into the hands of the 
army for the defense of our institutions." 

In its issue of June 5, 1918, £/ Excelsior pub- 
lished the following news item : 

" In round numbers the amount stolen from the 
Federal Treasury by paymasters now consigned to 



MEXICO UNDER CARRANZA 21 

the authorities is close to 600,000 pesos. There 
are 37 cases before the District Court of the Capi- 
tal. The amount for which the paymasters on 
trial appear to be responsible is the sum before 
mentioned, or, to be absolutely exact, 585,000 
pesos. In addition there are other cases before the 
Circuit Court, the Supreme Court of Justice and the 
District Courts of the states. From the data at 
hand, a moderate estimate of the sum involved in 
these cases would be 400,000 pesos. However, we 
lack the exact data to give a detailed account of 
these cases. 

"With regard to the cases pending before the 
four District Courts of Mexico, two proprietory 
and two supplementary, we have the following 
information/' * * * 



The paper then proceeds to give the names of 
the thirty-seven defaulting army paymasters 
referred to with the amount which each is accused 
of having stolen. The list is too long for publica- 
tion here, but it may be stated that the amounts 
run from 500 pesos to 180,000 pesos. 

The foregoing instances of grafting are merely 
illustrative of the scope and extent of the public 
robbery perpetrated by the members of the Ca- 
rranza government. 

The United States Bureau of Statistics of the 
Department of Commerce and Labor shows the 
total revenue and expenditures of the National 
Government of Mexico for the fiscal year 1909- 



22 MEXICO UNDER CARRANZA 

19 1 6, the last year of the Diaz regime, in United 
States dollars as follows: 

Revenue 5^52,952,000 

Expenditures . 47,324,000 

Out of this payment was made of the interest 
on the national debt and on railroad bonds; the 
national railroads were kept in excellent physical 
condition, and all obligations of the government 
were met. 

It is also of interest to note that during the last 
fifteen years of the Diaz regime, there was a sur- 
plus of national revenue amounting to $73,500,999, 
of which $36, 500,000 was devoted to public works, 
the remainder of $37,000; 000 being used to form 
a part of the available cash holdings of the National 
Treasury which existed when Diaz went out of 
power. The same statistical authority shows 
the national revenues and expenditures of the 
Carranza government during the fiscal year 19 14- 
191 5 to have been (in U. S. dollars): 

Revenue $72,687,000 

Expenditures 75,798,000 

It may be well to call attention specifically right 
here to the fact, although it is made plain in these 
pages, that this increase of twenty million dollars 
in the revenues as compared with the Diaz regime 



MEXICO UNDER CARRANZA 23 

does not indicate a healthy growth in commerce 
and industry, but quite the reverse. The national 
revenues are raised chiefly by confiscation rather 
than by a just tax on prosperous business. Fur- 
thermore, it must be noted that the national ex- 
penditures do not include a cent for the payment 
of interest or principal of the national debt. They 
could not have included any considerable sum for 
the maintenance of the railways for the reason 
that since the Carranza administration began 
operating them there has been a constant deteriora- 
tion of rolling stock and permanent way until 
to-day there are barely enough engines and cars 
remaining in use to operate intermittently the 
most important two lines. Large mining and 
commercial interests are compelled to furnish their 
own rolling stock in order to secure service. 

It will be noted in the following table that 
120,755,631 pesos, or nearly two-thirds of the 
budget, is assigned to the Department of War 
and Marine, which, of course, means almost en- 
tirely to the army. There is no provision made 
for the payment of interest on the public debt 
and nothing for education beyond an item as- 
signed to the "Bureau of University and Fine 
Arts''; nothing for the education of the ccmmon 
people who had been promised such liberal educa- 
tional advantages by the Carranza party before it 
came into power. 



24 MEXICO UNDER CARRANZA 

The Federal appropriations passed by the 
Mexican Congress for 191 8 were as follows: 

PESOS 

Legislative Power 2,967,858.75 

Executive Power 1,064,577.20 

Judicial Power 1,552,258.00 

Department of Government . . 1,280,428.50 

Department of Foreign Affairs . 3362,591 .50 

Department of Finance and Pub- 
lic Credit 20,213,094.40 

Department of War and Marine. 120,755,631 .65 

Department of Agriculture and 

Fomento 7,005,683.00 

Department of Communication 

and Public Works . . . 21,382,229.65 

Department of Industry and 

Commerce 2,831,384.00 

Bureau of University and Fine 

Arts 2,269,301 .00 

Bureau of Public Health . . . 1,898,396.50 

Office of Attorney General of the 

Nation 549,888.50 



Total 187,133,322.65 

In a statement published in the Washington 
Star, October 31, 19 17, from a person described as 
Charles A. Douglas, "Counsellor in the United 
States for the Mexican Government, who returned 
to Washington this week after a month's stay in 
Mexico," the following appears: 



MEXICO UNDER CARRANZA 25 

"Order is being slowly but surely restored. 
Barring exceptional train robberies and small sore 
spots in the states of Morales and Durango, condi- 
tions are approaching normal everywhere. * * * 

"The recently and intelligently revised system 
of education is in full operation from the common 
free schools all over the Republic to the National 
University at the capital. * * * 

"The work of railroad rehabilitation is illumi- 
nating. More than 12,000 freight cars and loco- 
motives were destroyed down to their steel frames 
during the Revolution. They are now running at 
full blast eight or ten workshops located in various 
sections of the Republic, giving work to 11,000 
employees and the cars are being rebuilt wholly 
at home at the rate of 4,000 per annum." 

Compare the foregoing with the following from 
a report of the debate in the Mexican Chamber of 
Deputies on the suspension of constitutional 
guaranties published in El Universal of Mexico 
City, October 17, 19 17, at which time Mr. Douglas 
must have been in the Mexican capital, according 
to the Washington Star, in which Luis Cabrera, 
who at that time was second in importance in the 
Carranza administration, is quoted as saying: 

"To commence a review of the determining 
factors of this present situation I must at once 
refer to our delicate economic situation. And I 
put it in the first place because we all know that in 
politics success comes with money and there can be 



26 MEXICO UNDER CARRANZA 

no success without money. * * * We have de- 
stroyed the banks because they opposed the revo- 
lution but now shall we say *We are done; give us 
your bills again? * No ; we will not do it. We have 
destroyed the railways because it was necessary 
to do it to combat the military enemy. Very 
well; now what we have to do is to repair the 
railways so that the blood of prosperity of the 
country may begin to circulate again over them, 
for without ways of communication we can do 
absolutely nothing. * * * Our political obli- 
gation toward attacks on train and highway 
robbery is to study them to see if they are inde- 
pendent or if there is some cause which unites 
them. * * * Does the army exist? Yes. Does 
[the Villa movement exist? Yes, it exists and it 
must be extirpated ruthlessly. Does the Zapata 
movement exist? Yes, the Zapata movement 
covers exactly the large grant which Charles V as- 
signed to Marquis Del Valle: Morelos, Puebla, 
Tlaxcala, Oaxaca and Chiapas.'* 

The places named by Mr. Cabrera as the locale 
of the Zapata movement are five Mexican states. 
His statement harmonizes with other facts adduced 
in this chapter, all tending to show the existence 
of a condition very far from that described in the 
Washington Star article. 

Regarding the "recently and intelligently re- 
vised system of education," which according to 
the Counsellor for the Mexican Government, "is in 
full operation, from the common free schools all 



MEXICO UNDER CARRANZA 27 

over the Republic to the National University at 
the capital/' the following excerpt from El Ex- 
celsior, of Mexico City, for December 21, 19 18, 
will be found illuminating: 

"One hundred and sixteen thousand three hun- 
dred eleven children of school age in the Federal 
District are receiving no instruction at all. This 
figure, which is all the more significant — and dis- 
couraging — in that it relates to a section which is 
usually considered the most cultured of the Re- 
public, has been taken from the statistical data 
just published by the Bureau of Education. 

"The present census gives the Federal District 
a population of approximately 1,000,000 inhabi- 
tants. Applying the generally accepted rule 
which gives 20 per cent, of the total population to 
children of school age, there should be 200,000 
such children in the Federal District. 

"The school census taken at the opening of the 
present year — ^which was unquestionably deficient 
in several respects — shows an enrolment of 89,689 
children, thus leaving 1 16,31 1 children who are re- 
ceiving no instruction at all. These figures, which 
offer much food for thought, bring out strikingly 
the backwardness of education as compared with 
former years. 

"In 1 9 10, when the population of the Federal 
District according to the census of that year, was 
720,752, the school enrolment was 86,896, a dif- 
ference of less than 3,000, with a population of 
300,000 less than in the present year. 

"But even more recent years have shown a 



28 MEXICO UNDER CARRANZA 

larger school attendance than for the year just 
closed. Thus, in 191 7 the attendance reached 
104,038, that is to say, 21,000 more pupils than 
there are to-day. 

" If we turn now to the number of schools, here 
again we find a remarkable difference. In 19 10, 
the following schools were open: Grade Schools 
332; Higher Grade Schools 40; Night Schools 
(Extension Schools) 42; Kindergarten 5 — total 419. 

"During the year just closed the following 
schools were open: Grade Schools 270; Higher 
Grade Schools 60; Night Schools (Extension 
Schools) 42; Kindergartens 1 1 — total 382. 

"It will be seen, therefore, that to-day with a 
larger population the Federal District has 36 less 
schools than it had in 19 10. 

"The number of teachers assigned to the 382 
schools that were open during the past year was 
1980, of whom 826 were Normal School graduates, 
335 certified teachers, and 819 were without any 
certificate at all. 

"The budget for last year, which covered the 
Federal District, and the territories of lower 
California, Tepic, and Quintana Roo, assigned 
13,000,000 pesos to educational purposes. The 
budget for 191 9, covering only the Federal Dis- 
trict, carries only 5,500,000, distributed as follows: 
For the City of Mexico 2,971,634; for the munici- 
palities exclusive of the city, 955,455; for the 
Bureau, 1,817,385.'' 



One of the gravest charges brought by the 
Carranza revolutionists against their predecessors 



MEXICO UNDER CARRANZA 29 

and most strongly insisted upon, was that proper 
provision had not been made for the education 
of the masses of the Mexican people. The 
Carrancistas pledged themselves to afford ample 
facilities for popular education, as the most im- 
portant of the reforms which they were to institute. 
Notwithstanding this, we find that, although the 
population of the capital city of Mexico has in- 
creased nearly 50 per cent, since 19 10, the last 
year of the Diaz administration, there is to-day 
in the Federal District containing the City of 
Mexico, 37 fewer schools than existed in 19 10. 
Furthermore, while the Carranza budget for last 
year for education in the federal district and ter- 
ritories was 1 3,000,000 pesos, the national budget 
for education for 19 19 carried only 5,500,000 
pesos. This, of course, means that the public 
revenues are being so fully absorbed by the graft- 
ing officers of the army which keeps Carranza in 
power, that little is left for popular education. 
The failure of the Carranza regime to live up to 
its promises is emphasized by the fact that its 
declared annual income is 46,000,000 pesos larger 
than was that of the Diaz administration. 

Propaganda publications maintained in Wash- 
ington by the Carranza government assure the 
public in almost every number that peaceful con- 
ditions throughout all the territory of Mexico are 
nearly or quite restored. Notwithstanding all 



30 MEXICO UNDER CARRANZA 

this it appears that nearly two-thirds of the 
national appropriation for the year 191 8 has been 
devoted to maintaining the military power. 

To all who understand conditions in Mexico, 
this means that the heads of the army are being 
bribed, at the cost of the public, to maintain the 
Carranza element in power, and that the leaders of 
that party are prepared to sacrifice the country 
and its people in every way so long as they may 
retain the reins. 

While the Carranza government is devoting 
nearly two-thirds of the national revenue to the 
army, recent reports show how the mass of the 
people are faring and what is being done for their 
benefit. An American business man of high 
character who had just returned from a trip 
through Mexico for the purpose of deciding whether 
it was possible to reopen an important public- 
service undertaking in the City of Mexico which 
had necessarily been discontinued shortly after 
the Carranza forces took possession of that city, 
writing under date of March 21, 1918, reported 
the following among other things: 

"Our train left Laredo, Mexico, on time, Febru- 
ary 17, and the trip was very pleasant from there 
until we reached San Luis, from which point it was 
necessary that we be accompanied by an armoured 
train and on asking the reason for this we were 
informed that the country thereabouts was in- 



MEXICO UNDER CARRANZA 31 

fested with bandits, so much so that it was unsafe 
to travel save in this way. An armoured car was 
attached to the rear of the Pullman. In this way 
we got through without any mishap. The train 
that went to the city the day previous was de- 
tained for five hours while the bandits were being 
driven into the hills. 

"As you know, the national railways of Mexico 
pass through a very rich agricultural section of the 
republic and this is the season of the year when the 
ranchers should be busy planting their crops. On 
the entire trip we did not see a single man in the 
fields getting ready for spring planting and saw that 
very little fall wheat had been sown. The crop this 
year from that section of the Republic will be very 
small. In addition to the above we did not see 
more than one hundred head of cattle grazing on 
the entire trip. 

" During the first day in the city we were sur- 
prised by the number of people on the streets and 
were told that the city and its suburbs now had a 
population of one million people, and that the cities 
of Vera Cruz and Guadalajara had populations of 
sixty-five and one hundred and fifty thousand 
people, respectively. This condition is brought 
about by the fact that it is not safe for them to live 
out in the country and work their farms. This 
great influx of people has caused rents and food- 
stuffs to increase in price, or as it was expressed, 
there is a large consumption here and no produc- 
tion. 

"The railroads of the country are all in control 
of the government. The trains that run to Laredo 
and Vera Cruz are being run, and will be run, at all 



32 . MEXICO UNDER CARRANZA 

hazards to the extent of the Carranza control. 
Trains to Laredo run every day and those to Vera 
Cruz run about five days each week. This ir- 
regularity is due to rebel activities in the vicinity 
of Ometusco. 

"The train equipment on these two roads is 
kept in good shape due to the fact that all of the 
equipment of the railroads of the Republic is con- 
centrated on the two lines. Up to the present 
time, when the equipment was getting to be in bad 
shape, the government would confiscate another 
railroad and replenish, but now they have taken 
over their last road and the source of supply will 
soon be exhausted. To show how the railroad 
equipment has deteriorated, let us state the fol- 
lowing facts: 

"The Mexican railroad had in its service loo 
engines. After nine months' operation by the 
government of Mexico, there are only 30 of these 
engines that are fit for service. Of the equip- 
ment of nationally owned lines, at least ninety 
per cent, is in the yards along the lines. Aguasca- 
lientes yard has 288 broken-down engines, San 
Luis 231, and all the other small yards are full. 
Steel for the repairing of the tracks is being se- 
cured from the old Central Railroad of Mexico. 

"The Mexico City of to-day is not the Mexico 
City of six years ago. At that time, the people 
looked better, the streets were cleaner, the pave- 
ments were in good condition, the foreigners were 
all busy and provided employment for all the 
Mexican people who wanted to work. Their 
homes were kept up in good shape and showed 
evidences of prosperity and wealth. None of this 



MEXICO UNDER CARRANZA 33 

exists now; just the reverse, and it is plain to the 
casual observer that the present state of affairs can 
easily be traced to the inefficiency of the several 
parties which have ruled the country during the 
elapsed time. 

"Not a single one of the several rebel chiefs, who 
have been in power, can be said to represent the 
wishes of the Mexican people. They do represent 
a small faction and all of the laws made and en- 
forced in that time have been for the benefit of the 
officials and their friends and not for the people. 

"The present officials are taxing the people 
much above the taxes of former years. They are 
collecting more money but they are not paying 
their employees. School teachers in the City of 
Mexico have not been paid for months. Clerks 
in the employ of the government are receiving half 
pay. But they do not fail to pay the excessive 
salaries of the generals and a few subordinates 
who are so much in evidence in the streets, riding 
around in high-priced automobiles. 

"The generals and their subordinates in Mexico 
City are the only government employees who are 
receiving full pay. This pay is increased by graft 
secured on army business, so that thousands of 
dollars are expended by each one in the purchase 
of automobiles and the entertainment of disreput- 
able characters. This was so marked that a history 
of the subject was published in El Universal, which 
antagonized the army officials to such an extent 
that the editor of this paper was thrown into jail 
where he was kept for more than a month. Need- 
less to say, the article did not have the desired 
effect as the dissipation increased rather than de- 



34 MEXICO UNDER CARRANZA 

ciieased. If such a thing is possible, it is getting 
worse every day." 

Another description of conditions up to the 
end of June, 1918, is furnished by a gentleman who 
had resided in Mexico City during all of the revolu- 
tionary period until the latter part of last June. 
He is a newspaper man of experience, a trained 
observer, familiar by years of life in Mexico with 
the people of the country and the conditions which 
prevail. His character is so high that I am con- 
vinced that he is entitled to the fullest credence. 
He says: 

"According to newspapers, entirely friendly to 
the Carranza administration, literally thousands 
of government employees have been dismissed, in- 
cluding not only clerks in the government depart- 
ments but school teachers and railway men as the 
railways of the country are being operated by the 
government. Even entire government bureaus 
have been abolished. There is retrenchment 
everywhere along the line except in one depart- 
ment of the government — the military establish- 
ment. The significance of this fact is not to be 
overlooked. 

"In El Universal, a Mexico City newspaper 
now owned by prominent officials of the Mexican 
Government and entirely friendly to Carranza, a 
good bird's-eye view of the situation in Mexico 
is given in an editorial published June 5, 19 18. 
The editorial seeks to remonstrate with certain rail- 



MEXICO UNDER CARRANZA :j5 

road employees for protesting against a govern- 
ment order that their wages should be paid 75 
per cent, in cash and the remainder in government 
promises to pay to be redeemed in actual cash 
'when there is an improvement in the economic 
circumstances that prevail at present.' The editor 
says: 

'"The argument [of the employees] is based on 
a falsehood, namely, that the weight of this policy 
of economy will fall solely on the working men of 
the Mexican Railway. The truth is that the 
weight of this policy of economy has been felt for 
some time past by social classes just as important as 
the Mexican Railway workmen. The facts are 
much too recent to call for repetition. Who is 
ignorant of the fact that many government bur- 
eaus have been closed because of the policy of econ- 
omy? Thousands of school teachers have been dis- 
missed; thousands of government employees have 
been discharged, even in the railways, the reduc- 
tion of the personnel cannot be called slight. 

" * Did not the newspapers of yesterday or the day 
before state that nine hundred railway men, who had 
been dismissed from their jobs, were going to the 
United States ? * 

"There is great suffering among the lower classes 
from lack of food and the pangs of hunger are not 
unknown among the middle classes. Beggars, 
always numerous in Mexico, have multiplied ten- 
fold. In Mexico City, beggars are constantly at 
the entrances of all the restaurants of any size and 
persons going in and out are importuned for char- 
ity. Waiters have to keep constantly on the alert 
to prevent beggars in their filthy rags from entering 



36 MEXICO UNDER CARRANZA 

the restaurants and begging bits of food from persons 
dining at the tables. In the central streets of the 
capital at night, it is a common sight to see doorways 
heaped with boys and girls of tender age, sleeping 
huddled together for warmth, often with a dog or two 
in the pile. 

''Excessive prices of com and beans make it 
almost impossible for the poorer classes to use 
them and the middle classes, whose wages have 
been only slightly increased, if increased at all, are 
in even greater straits as they have to maintain an 
appearance of respectability. 

"As a class, perhaps, there has been no greater 
suffering than among the school teachers. In 
some of the states, there were instances where the 
teachers in the public schools had not been paid for 
four or five months. In Mexico City even, it was 
frequently the case that their pay was a month or 
more in arrears. 

"Under the Mexican system, they should receive 
their pay every ten days, there being three pay days 
to the month. Due to the characteristic Mexican 
custom of living from day to day, the passing of 
even one pay day was a serious matter, causing 
suffering and with the pay constantly in arrears, 
teachers, as a class, were almost always in a state 
of not knowing where their next meal was to come 
from. 

" I was told by a former Mexican public school 
teacher, who is now working in a private institu- 
tion, that she frequently met her old friends on the 
street and that their constant story was that of 
suffering and want. She said that at first she hesi- 
tated to offer them money but having made the 



MEXICO UNDER CARRANZA 37 

experiment once, she never hesitated again. She 
said that the offer of a peso or a half peso brought 
tears of gratitude to the eyes of the recipient and often 
a confession of not having tasted food for twenty-four 
hours or longer. These were teachers coming from 
the respectable middle class, and even in some cases, 
from former wealthy families of the upper classes, 
and only extreme necessity would have brought them 
to the point of accepting alms. 

" In the state of Zacatecas months passed with- 
out the school teachers being paid and during the 
teachers' convention at the state capital, for the 
purpose of registering a general protest, statements 
were made that teachers had pawned all their furni- 
ture and other household goods, and in many cases, 
actually were on the verge of starvation. One man 
teacher stated that he had just lost a child because 
he could not by any possible means obtain money 
to buy certain foods which the attending physician 
had declared were necessary to save the child's life. 

"In the states and in the capital teachers of 
many years' experience have abandoned their 
positions and sought other means of making a 
living, often being forced into menial employ- 
ment. 

" In travelling from Mexico City to the Ameri- 
can border one cannot fail to be impressed with 
the number of beggars at the stations as the train 
proceeds through the central Mexican states and, 
with the added fact that, as the American border is 
approached, the beggars are less numerous and 
finally disappear altogether. 

"A typical condition is described in the following 
note from the San Luis Potosi correspondent of 



38 MEXICO UNDER CARRANZA 

El Excelsior y one of the leading Mexico City news- 
papers: 

" ' San Luis Potosi, June 2 — A great affluence of 
beggars has been noted in different parts of the 
city for some days past, especially in the paseos and 
central streets. Passers-by are Hterally assaulted 
by these beggars — sometimes there are entire 
families of them — ^who appeal to the charity of 
the public. The sights presented by these persons, 
in addition to being repugnant, are highly im- 
moral, as many of them, incltiding men, women, and 
children, exhibit themselves in the public highways 
in a condition which lacks but little of complete naked" 
ness, often a serious danger to the public health on ac" 
count of the filthy condition of the rags which hut 
half cover them' 

"The Mexican army is Carranza's salvation and 
at the same time is his greatest danger. Estimates 
as to the actual force sunder arms vary from fifty 
to seventy-five thousand, the observer stating that 
the pay rolls probably show double the number 
given in their estimates. This army is the biggest 
drain on the Carranza treasury; it is keeping the 
federal government in a state of bankruptcy, and 
yet so widely spread are revolutionary activities 
in Mexico that the maintenance of such a force is 
necessary. 

" The Carranza income is larger than that of the 
Diaz government and could he reduce army graft 
even fifty per cent, his problem of making the in- 
come meet disbursements would be comparatively 
easy. 

"On June 18, 1918, El Universal published the 
following: 



MEXICO UNDER CARRANZA 39 

"*We were informed yesterday from an author- 
ized source that in the new budget the federal 
government is preparing, the salaries assigned to 
government employees will be seventy-five per 
cent, of that they now receive. At present seventy- 
five per cent, of the salary is being paid in cash and 
twenty-five per cent, in bonds but, in the new 
budget, the salary basis will be seventy-five per 
cent, of that now in effect.' 

"It is virtually impossible for Carranza to stop 
graft and keep a loyal army. This is more espe- 
cially the case when one remembers that some of the 
leading generals with the most important com- 
mands in the country are earning very modest 
salaries and living at the proverbial clip of Pitts- 
burgh millionaires despite the fact that they had no 
private fortunes before joining the Carranza move- 
ment.'' 

The criminal waste of public funds by pubh'c 
officials in Mexico City at the present time is 
mentioned fn the article from the New York Sun, 
previously referred to, in the following language: 

"Mexico City wears an awful aspect and the 
awfulness is accentuated by the contrast between 
the dark, filthy patios, in which the starving peons 
huddle and the palaces huilt by the ' Cientificos' of 
the Dial ^^g^'^^ where the Carrancista officials now 
hold obscene orgy. Carranza himself has chosen the 
magnificent residence at g^ Paseo de la Reforma as 
his private residence. Each general has his own 
picked troop to guard his residence and a military 
hand to entertain himJ' 



40 MEXICO UNDER CARRANZA 

It is evident, judging from all reliable informa- 
tion, that the Carranza party has violated its 
pledges to the people of Mexico as completely as 
the pledges of its leaders to the United States and 
the civilized world were violated. 

While generals of the army are permitted to rob 
the public funds and pursue a career of shameless 
dissipation and extravagance, the employees of 
the railroads have their wages reduced; the school 
teachers remain without their pay and are forced 
to resign their positions by thousands; the civil 
employees of the government are dismissed and 
departments closed while important business re- 
mains unattended to. The country is filled with 
beggars, and people are dying by the thousands 
for lack of the necessities of life. 

The experience of the masses of the people under 
the government given the major portion of Mexico 
byjhe Carranza party furbishes a striking parallel 
to that of the Russians at the hands of the Bol- 
sheviki. In every country there exists a predatory 
element whose chief ambition it is to secure con- 
trol of the machinery of government by violence 
and then to use it in depriving industrious, frugal 
people of the property they have accumulated, and 
dividing it among themselves. This element is 
represented in Mexico by the Carranza party, 
in Russia by the Bolsheviki, and in the United 
States by the I. W. W. 



MEXICO UNDER CARRANZA 41 

In Mexico the destruction of productive industry 
by the greed of this party has deprived hundreds 
of thousands of the citizens of the chance of 
making a living and has brought indescribable 
miseries upon that country. Dispatches day by 
day for the last year have told the story of similar 
conditions in Russia, brought about by the actions 
of the Bolsheviki. By their plots for burning 
harvest fields, grain elevators, factories of various 
kinds, and destroying animals, the I. W. W. have 
shown that they would do the same thing if they 
should ever succeed in securing control of our 
country as the Carranza party has in Mexico and 
the Bolsheviki in Russia. 

The fact that in each country these predatory 
elements have been the tools of Germany, have 
accepted her money, done her criminal bidding, 
and in every way shown their sympathy for that 
country and its malignant purpose, to thwart 
which the Allies have expended the lives of millions 
of their citizens and billions of money, presents a 
peculiar psychological situation. Surely, the evi- 
dent sympathy of these criminal classes in each 
country with Germany can be accounted for only 
on the theory that it is an expression of that 
"fellow feeling which makes us wondrous kind." 



CHAPTER II 

Character oj the Carran^a Revolutionary Party Constitui" 
ing the Recognised Government of Mexico — The Relations 
Established with the United States and the Rest oJ the IVorld 

THE character of the Carranza revolution- 
ary party may be judged by the record of 
negotiations between its representatives 
and our own Department of State and by its acts 
in conducting the recognized government of 
Mexico. Some of the most important of these 
negotiations are set forth in U. S. Senate Docu- 
ment No. 321, entitled *' Affairs in Mexico." 
The relations established by the Carranza regime 
with the United States Government and with other 
nations are shown by the. communications con- 
tained in that document. Still more illuminating is 
the record made by the Carranza government 
by its treatment of foreigners, especially Americans. 
The information contained in Senate Document 
No. 321 was elicited by a resolution adopted by 
the Senate on January 6, 19 16, which was in part 
as follows: 

"Resolved, That the President be requested, if 
not incompatible with the public interests, to in- 

42 



MEXICO UNDER CARRANZA 43 

form the Senate upon the following subjects and 
to transmit to the Senate the documents, letters, 
reports, orders, and so forth, hereinafter referred 
to: 

"First. Is there a government now existing in 
the Republic of Mexico; and if so, 

"Second. Is such government recognized by 
this Government; how is such government main- 
tained, and where; who is now the recognized head 
of such government, and is the same a constitu- 
tional government? 

" Third. By what means was the recognition of 

any government in Mexico brought about, and 

what proceedings, if any, were followed prior to 

and resulting in recognition, in any conference 

between this country and Argentine, Brazil, Chile, 

Guatemala, and any other country or countries? 
* * * 

"Sixth. What assurances have been received 
from the Mexican Government, or requested by this 
Government, as to payment of American damage 
claims for injury to life or property of our citizens 
resulting from the acts of Mexico or citizens of that 
country within the past five years? 

"Seventh. What assurances have been given 
by the Mexican Government as to the protection 
of foreigners and citizens, and particularly in the 
free exercise of their religion, in public or in pri- 
vate?" 



In response to this resolution, the President, on 
February 17, 19 16, transmitted to the Senate a 
letter to himself from the Secretary of State, at- 



44 ' .MEXICO UNDER CARRANZA. 

tached to which were various documents to which 
the 'Secretary refers. In this letter the Secretary 
says [the italics throughout are the author's] : 

"(i) The government at present existing in 
Mexico is a de facto government established by 
military power which has definitely commiUed itself 
to the holding of popular elections upon the restord" 
tion of domestic peace. 

" (2) This de facto government of Mexico, of 
which General Venustiano Carranza is the chief 
executive, was recognized by the Government of 
the United States on October 19, 1 91 5. * * * 

" It cannot be said that the de facto govern- 
ment of Mexico is a constitutional government. 
The de facto government, like the majority of 
revolutionary governments is of a military char- 
acter, but, as already stated, that government has 
committed itself to the holding of elections, and it is 
confidently expected that the present government will, 
within a reasonable time, he merged in or succeeded 
by a government organised under the constitution 
and laws of Mexico. * * * 

** (6) With regard to the settlement of Ameri- 
can claims against the Mexican Republic for in- 
juries to the lives or property of American citizens, 
the undersigned has the honour to direct your at- 
tention to the copy of a letter from Mr. Arredondo 
(the de facto government's agent in Washington), 
dated October 7, 191 5, and its enclosures hereto- 
fore referred to and hereto appended as Enclosure 
No. 4 and its annexes. 

" (7) With reference to the assurances given by 



MEXICO UNDER CARRANZA 45 

the Mexican Government concerning the protec- 
tion of foreigners and 'citizens,' particularly re- 
specting the free exercise of religion, the under- 
signed encloses herewith a letter on the subject 
from Mr. Arredondo, dated October 8, 191 5, (En- 
closure No. 7)." 

In Mr. Arredondo's letter, referred to by the 
Secretary of State as Enclosure No. 4, appears 
the following: 

"Mr. Venustiano Carranza, depositary of the 
executive power of Mexico, whom I have the 
honour to represent in this country, has author- 
ized me to say to your Excellency that his public 
declarations of December 12, 19 14, and June 11, 
191 5, bear the statement that the government he 
represents in its capacity of a political entity, 
conscious of its international obligations and of its 
capability to comply with them, has afforded guaran- 
ties to the nationals and has done likewise with regard 
to foreigners and shall continue to see that their lives 
and property are respected in accordance with the 
practices established by civilised nations and the 
treaties in force between Mexico and other coun- 
tries. That besides the above, he will recogniit 
and satisfy indemnities for damages caused by the 
revolution which shall be settled in due time and in 
terms of justice'* 

Mr. Arredondo's letter was accompanied by a 
number of documents, referred to by the Secretary 
of State as ''annexes." The first of these, in 



46 MEXICO UNDER CARRANZA 

order of date, is entitled "Plan of Guadalupe" 
and appears to be the declaration of principles 
upon which the Carranza revolution was founded. 
This declaration is dated March 26, 191 3, and 
purports to have been signed by sixty-four officers 
of the troops of the state of Coahuila with which 
Carranza, then governor of that state, began his 
revolution against the Huerta government, which 
had succeeded the murdered Francisco Madero. 
In this "Plan of Guadalupe" appears the following; 

"Whereas the legislative and judicial powers 
have recognized and protected General Huerta 
and his illegal and anti-patriotic proceedings con- 
trary to constitutional laws and precepts; * * * 
we, the undersigned, chiefs and officers command- 
ing the constitutionalist forces, have agreed upon 
and shall sustain with arms the following: 

" I . General Victoriano Huerta is hereby re- 
pudiated as President of the Republic. * * * 

"4. For the purpose of organizing the army 
which is to see that our aims are carried out, we 
name Venustiano Carranza, now governor of the 
state of Coahuila, as first chief of the army which 
is to be called 'Constitutionalist Army* 

" 5. Upon the occupation of the City of Mexico 
hy the Constitutionalist Army, the executive power 
shall be vested in Venustiano Carranza, its first 
chief, or in the person who will substitute him in 
command. 

"6. The provisional trustee or the executive 
power of the Republic shall convene general elec- 



MEXICO UNDER CARRANZA 47 

iions as soon as peace may have been restored and will 
surrender power to the citizen who may have been 
elected." 



Accompanying the letter of Mr. Arredondo was 
a document entitled "Resume of the Mexican 
Constitutionalist Revolution and Its Progress," 
of which Mr. Arredondo was the author, in which, 
after reciting the deaths of President Madero and 
Vice-President Suarez and their succession in 
power by General Huerta, he says: 

*' Mr. Venustiano Carranza, upon being apprised 
of the above-mentioned outrageous assault and of 
the infringement of the federal constitution and acting 
in his capacity of the governor of the state of 
Coahuila and in fealty to the oath he had taken upon 
entering into the performance of his high investiture 
to preserve and cause all others to observe the federal 
constitution and to guard its institutions repudiated 
'the aforesaid General Huerta as President of 
Mexico and initiated that which has been named 
as *The Revolution of the Constitutionalist 
Party.'" 

Mr. Arredondo also transmitted to the Secretary 
of State, as an "annex" to his letter, a document 
entitled "Decree of General Carranza" dated 
December 12, 19 14, which was signed by General 
Carranza and in which the following occurs: 



48 MEXICO UNDER CARRANZA 

" That the undersigned, in his capacity as consti- 
tutional governor of the state of Coahuila, had 
solemnly taken the oath to observe and cause the 
general constitution to he observed, and that comply- 
ing with this duty and of the above oath, he was in- 
evitably obHged to arise in arms to oppose the 
usurpation of Huerta and to restore constitutional 
order in the Republic of Mexico. * * * 

"That, it being imperative, therefore, that the 
interruption of constitutional order should sub- 
sist during this new period of struggle, the Plan 
of Guadalupe should, therefore, continue to be in 
force, as it has been the guidance and banner of it, 
until the enemy may have been overpowered com- 
pletely in order that the constitution may he re- 
stored. * * * 

"Article 4. Upon the success of the revolution 
when the supreme chieftainship may be established 
in the City of Mexico and after the elections for 
municipal councils in the majority of the states 
in the republic, the first chief of the revolution, as 
depository of the executive power, shall issue the 
call for election of congressmen, fixing in the call the 
date and terms in which the election shall be held." 

Mr. Arredondo also transmitted with his letter 
an "annex" entitled "Declaration to the Nation/' 
signed by V. Carranza, dated June 11, 191 5, in 
which the following occurs: 

"Treason was carried into effect by General 
Huerta under the pretext of saving the City of 
Mexico from the horrors of war. * * * Jhe 



MEXICO UNDER CARRANZA 49 

President and Vice-President were assassinated 
and, due to the complicity or weakness of the 
other powers, the nation was left without a consti- 
tutional representative. Then I, as governor of 
the state of Coahuila, and in obedience to the consii- 
tutional provisions, articles 121 and 1 28 of our funda- 
mental charter, assumed the representation of the 
republic in the terms in which the constitution 
itself vests me with this right, and supported by the 
people which rose in arms to regain its liberty. 
In fact, the above-mentioned articles provide the 
following: 

" 'Every public dfificer, without exception, prior 
to his taking possession of his charge, shall render 
an oath that he will sustain the constitution and the 
laws emanating therefrom. This constitution shall 
not fail in force or vigour, even though on account of 
rebellion its observance may he interrupted. In the 
case that pursuant to a public disturbance a gov- 
ernment contrary to the principles sanctioned by 
the constitution may be established, as soon as 
the people regains its freedom its observance shall 
be reestablished and, according to it and to the 
laws which by virtue of it may have been enacted, 
those who may have figured in the government 
emanated from the rebellion shall be tried as well 
as those who may have cooperated in the move- 
ment/ * * * 

*' IVith a view to realising the above-mentioned 
purposes, I have deemed proper to inform the na- 
tion upon the political conduct to be observed 
by the constitutionalist government, in the per- 
formance of the program of social reform con- 
tained in the decree of December 12, 19 14/' 



JO MEXICO UNDER CARRANZA 

, "First. The constitutionalist government shall 
afford to foreigners residing in Mexico all the guar- 
anties to which they are entitled according to our 
laws, and shall amply protect their lives, their free- 
dom, and the enjoyment of their rights of property, 
allowing them indemnities for the damages which 
the revolution may have caused to them, in so far as 
such indemnities may be just and which are to be 
determined by a procedure to be estabhshed later. 
The government shall also assume the responsibility 
of legitimate financial obligations J' * * * 

Fourth. There shall be no confiscation in con- 
nection with the settlement of the agrarian question. 
This problem shall be solved by an equitable 
distribution of the lands still owned by the gov- 
ernment; by the recovery of those lots which may 
have been illegally taken from individuals or com- 
munities; by the purchase and expropriation of 
large tracts of land, if necessary; by all other means 
of acquisition permitted by the laws of the coun- 

"Seventh. In order to establish the constitu- 
tional government, the government by me pre- 
sided shall observe and comply with the provisions 
of articles 4, 5, and 6 of the decree of December 
12, 1914." 

It should be noted that the two documents en- 
titled respectively "Decree of General Carranza/' 
dated December 12, 19 14, and "Declaration to 
the Nation," signed by V. Carranza, dated June 
II, 191 5, were, when they were issued, given the 
widest possible circulation in this country, as well 



MEXICO UNDER CARRANZA 51 

as abroad, with the intention, undoubtedly, of 
appealing to the sympathy and support of our 
country and the world jor the declared effort of the 
Carran:(a revolutionists to restore the constitution 
in its full force and thereby give to Mexico a govern- 
ment which should safeguard the rights of her own 
-people, as well as of foreigners. These documents, 
undoubtedly, had that effect among people who 
knew the Mexican constitution of 1857, referred 
to in them, as being an admirable organic law for 
the foundation of a democratic government. 

The 'Enclosure No. 7,'' referred to in paragraph 
7 of the letter of the Secretary of State to the 
President is a letter from Mr. Arredondo to the 
Secretary of State, dated October 8, 191 5, as 
follows : 

"My Dear Mr. Lansing: Complying with 
your Excellency's request asking me what is the 
attitude of the constitutionalist government in re- 
gard to the Catholic Church in Mexico, I have the 
honour to say that inasmuch as the reestablishment 
of peace within order and law is the purpose of 
the government of Mr. Venustiano Carranza, to 
the end that all the inhabitants of Mexico without 
exception, whether nationals or foreigners, may 
equally enjoy the benefits of true justice, and 
hence take interest in cooperating to the support 
of the government, the laws of reform, which guar- 
antee individual freedom of worship according to 
everyone s conscience, shall be strictly observed. 



52 MEXICO UNDER CARRANZA 

Therefore the constitutionalist government will 
respect everybody's hfe, property and religious be- 
liefs without other limitation than the preserva- 
tion of public order and the observance of the 
institutions in accordance with the laws in force 
and the constitution of the republic. 

"Hoping that I may have honoured your ex- 
cellency's wishes, I avail myself of this opportun- 
ity to reiterate to you the assurances of my highest 
consideration 

"E. Arredondo." 

There was also included in the report to the 
Senate a letter from the Secretary of State 
to Mr. Arredondo, dated October 19, 191 5, as 
follows : 

"My Dear Mr. Arredondo: It is my pleasure 
to inform you that the President of the United 
States takes this opportunity of extending recog- 
nition to the de facto government of Mexico, of 
which Gen. Venustiano Carranza is the chief 
executive. 

"The Government of the United States will be 
pleased to receive formally in Washington a diplo- 
matic representative of the de facto government 
as soon as it shall please General Carranza to desig- 
nate and appoint such representative; and, re- 
ciprocally, the Government of the United States 
will accredit to the de facto government a diplo- 
matic representative as soon as the President has 
had opportunity to designate such representa- 
tive. ' 



MEXICO UNDER CARRANZA 53 

"I should appreciate it if you could find it pos- 
sible to communicate this information to General 
Carranza at your earliest convenience. 

"Very sincerely yours, 

"Robert Lansing." 



The foregoing correspondence between Mr. 
Arredondo, the agent of the Carranza revolution- 
ists at Washington, and our Secretary of State 
plainly shows two things: 

First, that our Government, trusting in the 
pledges contained in the communications of Mr. 
Arredondo to it and in the various declarations of 
General Carranza, conferred upon the constitu- 
tionalist revolutionary party, headed by General 
Carranza, recognition as "the de facto government 
of Mexico of which General Venustiano Carranza 
is the chief executive." 

Second, that when the Secretary of State in his 
letter to the President referred, in paragraphs 6 
and 7 of that letter, to Mr. Arredondo's letters 
of October 7, 191 5, and October 8, 191 5, with 
annexes quoted from, he intended that those 
should be accepted as an answer to the inquiries 
appearing in paragraphs 6 and 7 of the Senate 
resolution, as to what assurances had been re- 
ceived from the Mexican Government regarding 
the payment of damages for injury to the life or 
property of American citizens; the protection of 



54 MEXICO UNDER CARRANZA 

foreigners and citizens in Mexico, and the free 
exercise of their religion. 

The final outcome of the pledges that the per- 
sonal, property, and religious rights of foreigners 
in Mexico would be observed by the Carranza 
Government that were iterated and reiterated by 
the head of that government, and by its represen- 
tative in Washington, appeared when the new 
constitution of Mexico was adopted by the 
Carranza party on January 31, 191 7. An inspec- 
tion of that instrument shows that every pledge 
made by the representatives of the de facto, since 
recognized as the de jure, government was delib- 
erately and completely violated. The record 
made by the Carranza administration since the 
adoption of that constitution in dealing with the 
rights of foreigners has shown a consistent and 
continued violation of all those rights. To show 
how completely the pledges of the Carranza gov- 
ernment were broken by the new constitution, a 
reference to a few of the provisions of that docu- 
ment will be appropriate. 

THE MEXICAN CONSTITUTION OF I917 

It will be observed that General Carranza, as 
the head of what he and his followers had denom- 
inated the ''Constitutional Party of Mexico," 
repeatedly made the pledge that as soon as he was 
established in the City of Mexico he would issue 



MEXICO UNDER CARRANZA 55 

a call for the election of Congressmen. The record 
shows that he did nothing of the kind. To the 
contrary, as soon as he found himself in control of 
the City of Mexico in the summer of 19 14 he de- 
clared a "preconstitutional period/' setting aside 
the constitution he had claimed he fought to restore 
and in the fall of 191 5 he issued a call for a consti- 
tutional convention whose functions it should be 
to enact for Mexico a constitution de novo in com- 
plete disregard of the constitution of 1857 to which 
he and his adherents had pledged unlimited fealty 
in communications addressed to our country and 
to the world. 

To show just how completely this action of the 
Carranza party violated the rights of the Mexican 
people, it should be observed that the constitution 
of i8^y was adopted by the vote of representatives of 
ail the Mexican people, whereas when General 
Carranza issued his call for the election of delegates 
to a constitutional convention several states of the 
republic were in no sense under his control and his 
writ calling the election did not run in those states. 

This fact is well known to everyone acquainted 
with the conditions which obtained in Mexico 
at that time and if any additional proof were 
needed it is found in the fact that shortly after 
the constitution was adopted, Mr. Cabrera, the 
Secretary of Finance under Carranza, stated on 
the floor of the Mexican Congress that the five 



56 MEXICO UNDER CARRANZA 

states of TIaxcala, Puebla, Morelos, Oaxaca, and 
Chiapas were entirely under the control of oppo- 
nents of the Carranza government. Furthermore, 
in his call for the election, First Chief Carranza 
expressly provided that the elective franchise should 
he exercised only hy those citizens who were known 
to have been the supporters of his revolutionary party. 

Thus, we have the spectacle of the chief of a 
movement which he denominated the "Constitu- 
tional Party/' pledged to the restoration of the 
constitution of 1857, deliberately throwing that 
instrument upon the scrap heap and assuming to 
enact a new constitution for the whole Mexican 
nation by a convention whose members did not 
represent several states of the Mexican federal 
union and were in no sense the representatives of 
all the citizens even in the states in which the 
election was held, because, by the very terms of 
the writ calling the election, a large number of 
those citizens were disfranchised. It has been 
stated, and I believe truly, that the votes cast for 
delegates represented less than 2 per cent, of the 
population. 

A glance at some of the provisions of this new 
constitution will show how completely it violated, 
in every possible way, the pledges that had been 
made to our Government and the rest of the world 
by the Carranza party. Section XIV of Article 
27 of the new constitution provides: 



MEXICO UNDER CARRANZA 57 

"Commercial stock companies shall not acquire, 
hold, or administer rural property. Companies of 
this nature which may be organized to develop any 
manufacturing, mining, petroleum, or other in- 
dustry, excepting only agricultural industries, may 
acquire, hold, or administer land only in an area ah-' 
solutely necessary for their establishments or adc" 
quale to serve the purposes indicated, which the eX" 
ecuiive of the union, or of the respective states, in each 
case, shall determine.'* 



Almost all large real estate holdings of foreigners 
in Mexico in the form of ranches, coffee and rubber 
plantations, and great projects for the irrigation of 
arid lands were held by corporations regularly 
organized under the laws as they had existed under 
the constitution of 1857. It will be noted that 
by the terms of the foregoing provision it is made 
impossible for any corporation to hold any rural 
or agricultural property, and, as a result, under a 
strict construction of this provision, many great 
properties belonging to foreigners, and particularly 
to Americans, are to-day without legal ownership. 

Furthermore, so far as manufacturing, mining, 
petroleum, and other industries of that nature 
are concerned, the executives of the nation and of 
the respective states are given the arbitrary author- 
ity to determine what extent of lands are "ab- 
solutely necessary'' to carry on their business 
and to divest them of all other lands. No appeal 



58 MEXICO UNDER CARRANZA 

IS, provided against the exercise of this most 
despotic power. No one who is at all acquainted 
with the character of the men who have come 
into office under Carranza can for a moment 
suppose that the great majority of them will 
neglect such an opportunity for robbing the foreign 
owners of mining and petroleum properties either 
by arbitrarily taking from them the larger or more 
valuable part of their holdings or by extorting 
money from them by threats of exercising this 
power. 

In the same Article 27 is found the following 
provision, relating to mineral deposits, including 
petroleum : 

" In the nation is vested direct ownership of all 
minerals or substances which in veins, layers, 
masses, or beds constitute deposits whose na- 
ture is different from the components of the land, 
such as minerals from which metals and metaloids 
used for industrial purposes are extracted; beds 
of precious stones, rock salt, and salt lakes formed 
directly by marine waters; products derived from 
the decomposition of rocks, when their exploita- 
tion requires underground work; phosphates which 
may be used for fertilizers; solid mineral fuels; 
petroleum and all hydro-carhons-r solid, liquid, or 
gaseous." 

Under the national laws formerly in force, 
"solid mineral fuels; petroleum and all hydro- 



MEXICO UNDER CARRANZA 59 

carbons — solid, liquid or gaseous" were the prop- 
erty of the owners of the lands in which they ex- 
isted. Under this law the title to the petroleum 
deposits as well as to coal mines, was acquired by 
foreigners who invested their money in the develop- 
ment of these great natural resources which had 
been neglected for four hundred years by the Latin 
masters of the country. Thus, at a stroke of the 
pen, all these great deposits of natural wealth, 
which had been bought and paid for by their 
foreign owners, are confiscated and the ownership 
transferred to the nation. 

The effort on the part of the Carranza govern- 
ment to assert the national ownership of these 
petroleum deposits has recently called forth a 
letter of protest from our ambassador at Mexico 
City. In this letter the position, entirely correct 
under international law, is taken that the attempt 
on the part of the new Mexican constitution to 
transfer the ownership of the oil deposits, that had 
been acquired by American citizens by purchase, 
to the Mexican nation is a violation of international 
law which works great injustice to our citizens 
and can not be tolerated. This matter is now 
under discussion, but there can be no doubt 
that, unless the Carranza government is compel- 
led by the sternest attitude on the part of this 
nation to hold its hand, this robbery will be con- 
summated. 



6o MEXICO UNDER CARRANZA 

Section VI I of Article 27 of the new constitution 
provides, as follows : 

** During the next constitutional term, the Con- 
gress and the state legislatures shall enact laws, 
within their respective jurisdictions, for the pur- 
pose of carrying out the division of large landed 
estates, subject to the following conditions: 

*'(a) In each state and territory there shall 
be fixed the maximum area of land which any one 
individual or legally organized corporation may 
own. 

" (b) The excess of the area thus fixed shall be 
subdivided by the owner within the period set by 
the laws of the respective locality ; and these sub- 
divisions shall be offered for sale ON SUCH CON- 
DITIONS AS THE RESPECTIVE GOVERN- 
MENTS SHALL APPROVE, in accordance with 
the said laws. 

" (c) If the owner shall refuse to make the sub- 
division, this shall be carried out by the local gov- 
ernment by means of expropriation proceedings. 

"(d) The value of the subdivisions shall be 
paid in annual amounts sufficient to amortize the 
principal and interest within a period of not less 
than twenty years, during which the person ac- 
quiring them may not alienate them. The rate of 
interest shall not exceed 5 per cent, per annum. 

"(e) The owner shall be BOUND TO RE- 
CEIVE BONDS OF A SPECIAL ISSUE to guar- 
antee the payment of the property expropri- 
ated. With this end in view, the Congress shall 
issue a law authorizing the states to issue bonds to 
meet their agrarian obligations.*' 



MEXICO UNDER CARRANZA 6i 

Thus, machinery has been prepared by which 
the amount of real property owned by any individ- 
ual or corporation may be limited and the owner 
may be forced to accept for all excess real estate 
which he owns prices fixed by the State, in State 
bonds, which at the present time would certainly 
not be worth the paper on which they were printed. 

The new constitution has proved so successful 
as an instrumentality for robbery and spoliation 
that its makers and administrators have been 
encouraged to amend it so as to extend very greatly 
its usefulness for acquiring without compensation 
the property of individuals and corporations. 
To that end, President Carranza, on December 
14, 19 1 8, submitted to the Mexican Congress 
a proposed amendment to the confiscatory Article 
27 of the constitution heretofore referred to. A 
part of the amendment provides that paragraph 
3 of Article 27, as amended, shall read as follows: 



"The nation shall have at all times the right 
to impose upon private property such limitations 
as the public interest may demand, as well as 
the right to regulate the development of such nat- 
ural resources as are susceptible of appropriation, 
in order to conserve them and equitably to dis- 
tribute the public wealth. Establishments or 
concerns of private ownership, having a general 
interest, whether belonging to single individuals 
or to associations or persons, shall not be closed 



62 MEXICO UNDER CARRANZA 

on account of lockouts, strikes, or any other like 
reason, without the authority of the executive who 
shall be empowered to administer them whenever, 
in his judgment, the suspension or closing of op- 
eration may prejudice the interest of society or 
the demands of the public service. So soon as the 
difficulties which have brought about govern- 
mental administration shall have disappeared, 
the government shall return to the owners, or 
their lawful representatives, the establishments 
that have been intervened, and the net proceeds 
obtained therefrom during the official adminis- 
tration. Establishments or concerns of public 
interest shall be deemed to be those having to do 
with communication by railroad, telegraph, tele- 
phone, ocean cable, radio-telegraph, radio-tele- 
phone and tramway; places for the sale of drugs 
and medicines; light companies; undertaking 
establishments: municipal water and sanitation 
enterprises; the mining industry, including both 
the extraction and the treatment of ore; agri- 
cultural establishments; cotton mills, and all 
other concerns which are analogous in the opinion 
of the executive.*' 



Just how the power that would be granted by 
this amendment to take over and operate any busi- 
ness or enterprise upon the occurrence of a strike 
of its employees would be used by the government 
in power is shown by an incident which transpired 
in the City of Mexico shortly after the Carranza 
soldiers took possession of it in 19 14. After 



MEXICO UNDER CARRANZA 63 

appropriating everything that was movable and 
which could be converted to their own use, the 
Carrancistas looked around for bigger game. 
The company operating in the city at that time 
which received the largest cash income was "The 
Tramways of Mexico Company'' a corporation 
financed by American, Belgian, Canadian, and 
English capital. This company was earning and 
paying a large bond interest and a small dividend 
upon its stock. It was also paying large monthly 
amounts to the Necaxa Light and Power Co. 
(owned by the stockholders of the railroad com- 
pany) for hydroelectric power. 

The governor of the Federal District in which 
Mexico City is situated, General Heriberto Jara, 
solved the problem of acquiring the street railroad 
lines with their great earning power by fomenting 
a strike of the company's employees. He notified 
the Mexican employees that he would stand by 
them in a strike, whereupon they promptly struck 
for double wages and half time. The officials 
of the railwa}^ resisted their demands, which would 
have meant immediate bankruptcy for the com- 
pany. Thereupon Governor Jara, declared the 
lines a public utility and that as such their opera- 
tion could not be suspended, and the government 
took over the lines. This was in October 19 14. 
The government still holds and operates the lines; 
it pays no bond interest and has paid only a small 



64 MEXICO UNDER CARRANZA 

part of the total amount due from the railroad 
company to the Hydroelectric Company for power. 
Of course the balance of the income has gone to pay 
the expenses of the Carranza government, which 
consist largely of salaries to army officers. 

Other concerns have been taken over in the 
same way, and, with the constitution amended 
as proposed by the president, any business in 
Mexico which appears to be earning a profit, from 
running a railroad to farming, can be seized and 
used by the government, as the street railways 
in the Federal District were. 

Article 33 of the new constitution provides: 

"The executive shall have the exclusive right to 
expel from the republic forthwith and without ju- 
dicial process any foreigner whose presence he 
may deem inexpedient." 

The significance of this article is twofold : 
First, it is undoubtedly intended to provide 
against any foreigner remaining in Mexico who 
might be disposed to make himself disagreeable 
by opposing any violation of his rights. Should 
he attempt such a thing, the president has power, 
from which there is no appeal, to banish him. 
That power has already been exercised in numer- 
ous instances. One use of it that attracted some 
attention a short time ago occurred when John C. 



MEXICO UNDER CARRANZA 65 

Royle, correspondent of the Associated Press, an 
American citizen, made himself persona non grata 
to the government in power in that country by 
telegraphing out of the country an article of news 
value which had appeared in one of the newspapers 
published in Mexico City. This American citizen 
was arbitrarily loaded upon a passenger coach, a 
guard was stationed on each platform and he was 
compelled to remain there until the train arrived 
at a frontier town, whence he was forced to leave 
the country. 

Second, the fact that such a provision as this 
could become part of the organic law shows how 
utterly the party now in power fails to conceive 
of the most rudimentary principles of democratic 
government. No people who have any correct 
conception of democracy could for a moment con- 
template the possession of such arbitrary power, 
from the exercise of which no appeal is provided, 
by any member of its government, 
v^ The pledge regarding religious toleration, con- 
tained in the letter of Mr. Arredondo to the Secre- 
tary of State already quoted, will be recalled. 
That pledge was undoubtedly accepted as satis- 
factory by our Secretary of State and by our 
President when, following its receipt, he recognized 
the Carranza power as the de facto government of 
Mexico. This, like all other pledges made by the 
Carranza party, was violated by the new constitu- 



66 MEXICO UNDER CARRANZA 

tion. Section II of Article 27 of this document 
provides. 

"The religious institutions, known as churches, 
irrespective of creed, shall in no case have legal 
capacity to acquire, hold, or administer real prop- 
erty or loans made upon such real property; all 
such real property, or loans, as may he at present 
held by the said religious institutions, either on their 
own behalf or through third parties, shall vest in the 
nation, and any one shall have the right to de- 
nounce properties so held. Presumptive proof 
shall be sufficient to declare the denunciation well 
founded. Places of public worship are the prop- 
erty of the nation, as represented by the federal 
government, which shall determine which of them 
shall be continued to be devoted to their present 
purposes. Episcopal residences, rectories, sem- 
inaries, orphan asylums, or collegiate establish- 
ments of religious institutions, convents or any 
other buildings built or designed for the adminis- 
tration, propaganda, or teaching of the tenets 
of any religious creed, shall forthwith vest, as of 
full right, directly in the nation, to be used ex- 
clusively for the public services of the federation 
of the states, within their respective jurisdictions. 
All places of public worship which shall later be 
erected shall be the property of the nation." 

In Article 1 30 of the new constitution, the fol- 
lowing appears : 

"The state legislatures shall have the exclusive 
power of determining the maximum number of 



MEXICO UNDER CARRANZA 67 

ministers of religious creeds according to the 
needs of each locality. 

"Only a Mexican by birth shall be the minister 
of any religious creed in Mexico. 

"No minister of religious creeds shall, either in 
public or private meetings, or in acts of worship 
or religious propaganda, criticize the fundamental 
laws of the country, the authorities in particular, 
or the government in general; they shall have no vote 
or be eligible to office y nor shall they he entitled to as^ 
semblefor political purposes/* 

Compare the foregoing with the declaration in 
the letter of Mr. Arredondo to our Secretary of 
State in which he says: 

"Therefore, the constitutionalist government 
will respect everybody's life, property, and religious 
belief, without other limitation than the preser- 
vation of public order and the observance of the 
institutions in accordance with the laws in force 
and the constitution of the Republic." 

Of course, as the constitution of 1857 was in force 
in Mexico when this letter was written, and the 
Carranza party had pledged itself to the support 
of that constitution, our Secretary of State was 
justified in accepting this declaration at its face 
value. In the cities of Mexico to-day are numbers 
of chapels and churches, erected either by mission- 
aries in their endeavour to serve and elevate the 
character of the people, or by foreigners for their 



68 MEXICO UNDER CARRANZA 

own use. Every one of these properties has been 
confiscated by the terms of the constitution and" 
now belong to the nation. Furthermore, no for- 
eign congregation can gather in a place of wor- 
ship built with its own money to enjoy the 
ministration of a preacher of its own race. In 
all the world no government recognized as even 
semi-civilized imposes upon religion such burdens 
as those under which it now rests in that portion 
of Mexico subject to the new constitution which 
has resulted as the perfect fruit of the Carranza 
movement. 

In view of the kind of government which the 
Carranza party has conducted, one can well under- 
stand the motive of its representatives for includ- 
ing in their new constitution an inhibition against 
a minister of the gospel criticizing the laws of the 
country, the authorities in control, or the manner 
in which they exercise their power. It would 
appear, however, that the provision divesting 
every minister of the gospel of his franchise as a 
citizen was a gratuitous expression of the hatred 
of the constitution-makers for all religion. 

The action of the Carranza government in in- 
flicting the new constitution upon Mexico, thereby 
violating all its pledges to this country and to the 
civilized world, is so thoroughly characteristic and 
illustrative of the moral degradation of the element 
now governing the larger part of Mexico as to 



MEXICO UNDER CARRANZA 69 

justify a short recapitulation of the violated 
pledges. 

First. In the Plan of Guadalupe already set forth, 
in the letter of Mr. Arredondo to our Secretary 
of State, and in Carranza's Decree and Declaration 
dated, respectively, December 12, 19 14, and June 
1 1, 191 5, appears the unquaHfied pledge that upon 
the success of the revolution begun by Carranza he 
would restore the constitution of 1857 to full force 
and effect. He violated this promise by assemb- 
ling a constitutional convention as soon as he ob- 
tained control of a major portion of the national 
territory and causing the convention to enact an 
entirely new constitution which should take the 
place of the constitution of 1857. 

Second, There appears in both the Decree and 
the Declaration of General Carranza an unqualified 
promise that when his revolutionary movement 
was successful he would first "issue the call for an 
election of congressmen, fixing, in the call, the day 
and terms in which the election shall be held.'' He 
violated this promise by issuing a call for the elec- 
tion of the members of a constitutional conven- 
tion and did not call congress together until he had 
secured the enactment by that convention which, 
as we have seen, did not represent the Mexican 
people, of a new constitution which would govern 
and control the action of the congress. 

Third. Both Mr. Arredondo in his letter to 



TO MEXICO UNDER CARRANZA 

our Secretary of State and General Carranza in 
both his Decree and Declaration solemnly promise 
to " afford to foreigners residing in Mexico all the 
guaranties to which they are entitled according to 
our laws, and shall amply -protect their lives, their 
freedom, and the enjoyment of their rights of property, 
allowing them indemnities for the damage which 
the revolution may have caused to them*' As we 
shall see in succeeding chapters, the Carranza 
government has confiscated the capital of banks, 
the public service properties throughout the 
country, and various other properties of foreigners 
of the value of hundreds of millions of dollars. 
Furthermore, although Carranza's administration 
has been recognized as the de facto government of 
Mexico by this country since October 9, 191 5, and 
as the de jure government for a year, no step has 
been taken to pay the indemnities due foreigners 
for damage done by the revolutionists, but the 
damage and destruction of those properties have 
continued to the present time and are now pro- 
ceeding. 

Fourth, In his Declaration to the nation of June 
II, 191 5, General Carranza pledged himself that 
'* there shall be no confiscation in connection with 
the settlement of the agrarian question. This 
problem shall be solved by an equitable distribu- 
tion of the land still owned by the government, 
etc." In violation of this pledge, the new consti- 



MEXICO UNDER CARRANZA 71 

tution gives to each state and territory the right 
to fix the maximum area of land which any one 
individual or corporation may own and to compel 
the owner to subdivide the remainder and offer it 
for sale at a price to be fixed by the government or, 
in default of such action on the part of the owner, 
gives the state the authority to fix the price at 
which it will take over the land and compel the 
owner to accept bonds of the state in payment 
therefor, which would mean absolute confiscation. 

We have seen how completely the Carranza 
government has violated the pledge of its diplo- 
matic representative, Mr. Arredondo, that "the 
laws of record which guarantee individual freedom 
of worship according to everyone's conscience 
shall be strictly observed/' 

One of the worst features of the Carranza con- 
stitution is that, not having been enacted by a 
constitutional convention representing either all 
of the national territory or all the people of the 
nation, it will be a perpetual and very just incite- 
ment to revolution on the ground that it was not 
adopted by and does not represent the will of the 
Mexican people. Indeed, that objection has al- 
ready been urged by all the opposing factions now 
in arms against the Carranza government as con- 
stituting a ground for their revolutionary activi- 
ties. 

The story of the violated pledges made to this 



72 MEXICO UNDER CARRANZA 

government by the Carranza administration would 
not be complete without some reference to the 
chapter which led to the Columbus massacre and 
subsequently to the killing of American soldiers and 
officers at Carrizal, which is briefly as follows : 

After the United States had recognized the 
Carranza regime as the de facto government of 
Mexico the latter appHed for permission to trans- 
port by rail through American territory a military 
force to attack Villa, for the reason that the famous 
bandit could not be reached in any other way. 
The request was granted; and Carranza soldiers, 
carried upon American railroads through United 
States territory, invaded that portion of Mexico 
controlled by Villa's forces and defeated them. 
This, of course, inspired Villa with the bitterest 
hatred of America and led to his attempt to secure 
revenge by raiding Columbus, New Mexico, and 
killing a number of the citizens and several United 
States soldiers. Before the President ordered 
the punitive expedition to invade Mexican ter- 
ritory he arrived at a diplomatic understanding 
with Carranza which is embodied in a communica- 
tion from our State Department to the Carranza 
government under date of March 13, 19 16, which 
included the following: 

"The Government of the United States under- 
stands that in view of its agreement to this recipro- 



MEXICO UNDER CARRANZA 73 

cal arrangement proposed by the de facto govern- 
ment, the arrangement is now complete and in 
force and the reciprocal privileges thereunder 
may accordingly be exercised by either govern? 
ment without further exchange of views." 

The President, as Commander-in-Chief of the 
United States Army, thereupon ordered the puni- 
tive expedition to proceed into Mexico, and on the 
evening of the day on which this order was given 
he called the newspaper correspondents to the 
White House and gave to them the statement 
which was published the next morning to the effect 
that the punitive expedition had heen ordered under 
an agreement with the de facto government of Mexico 
and was to be used for the single purpose of ap- 
prehending the bandit Villa and his followers. 
There can, of course, be no doubt that this state- 
ment was absolutely true and that the invasion was 
amply justified. Later, however, it became ap- 
parent to Carranza that the presence of American 
troops upon the soil of Mexico was prejudicing him, 
as the head of the government, with his supporters 
in whose minds he had sedulously cultivated hatred 
and distrust of the "gringos.'* With the purpose 
of rehabilitating himself in the regard of his sup- 
porters, he caused his Secretary of Foreign Rela- 
tions to address to our State Department the im- 
pudent letter, referred to in Chapter IV, in which 
the claim was made that the presence of American 



74 MEXICO UNDER CARRANZA 

troops in Mexico was an act of bad faith and was 
being used by our Government for political pur- 
poses; that their presence upon the soil of Mexico 
constituted a grave wrong to that country and end- 
ing with the following threat : 

"The Mexican government understands that 
in the face of the unwillingness of the Ameri- 
can Government to withdraw the above forces, 
it would be left no other recourse than to procure 
the defence of its territory by means of arms." 

In reply to this letter Secretary Lansing, in his 
indignant letter of June 20, 1916, quoted in Chapn 
ter IV, said: 

" If, on the contrary, the de facto government 
is pleased to ignore this obligation and to believe 
that, *in case of a refusal to retire these troops, 
there is no further recourse than to defend its 
territory by an appeal to arms/ the Government 
of the United States would surely be lacking in 
sincerity and friendship if it did not frankly im- 
press upon the de facto government that the execu- 
tion of this threat would lead to the gravest conse- 
quences,'' 

At the same time General Trevino, in command 
of a force of Mexican troops located near the camp 
of the American punitive expedition, sent a note 
to General Pershing, under date of June 16, 19 16, 
as follows : 



MEXICO UNDER GARRANZA 75 

"I am instructed by First Chief Carranza, to 
inform you, that any movement of American 
troops from their present lines to the south, east 
or west will be considered as an overt act and 
will be the signal for hostilities/* 

To this message General Pershing replied, under 
date of June 18, 1916: 

" I have not received any orders to remain sta- 
tionary or withdraw. If I see fit to send troops 
in pursuit of bandits to the south, east or west, 
in keeping with the object of this expedition, I 
shall do so. If any attack is made on any part of 
my forces when performing such duties, the entire 
military strength of the expedition will be used 
against the attacking forces." 

A short time after these threats were exchanged, 
a force of several hundred Mexican soldiers, armed 
with machine guns, attacked a small detachment 
of American cavalry killing several of their num- 
ber, including two fine young officers. This kill- 
ing of American soldiers, considered in the light of 
all the circumstances under which it occurred and 
the overwhelming force that attacked our men, 
was virtually assassination by lying in wait, but 
it was not succeeded by the "serious conse- 
quences" mentioned by our Secretary of State, 
nor was "the entire military strength of the ex- 
pedition" used against the attacking forces, as 



76 MEXICO UNDER CARRANZA 

threatened by the general commanding the Amer- 
ican punitive expedition. On the contrary, Car- 
ranza, apparently appreciating the fact that the 
wave of indignation at this outrage which swept 
over this country might force the hand of the 
Administration and compel the carrying out of the 
threats of Secretary Lansing and General Persh- 
ing, came forward with a proposition to appoint 
a joint commission to be constituted of three 
members representing each of the governments to 
"hold conferences and resolve at once the point 
regarding the definite withdrawal of the American 
forces now in Mexico, draft a protocol of agree- 
ment regarding the reciprocal crossing of forces, 
and investigate the origin of the incursions taking 
place up to date, so as to be able to ascertain re- 
sponsibility and arrange definitely the pending 
difficulties or those that may arise between the two 
countries in the future. * * * The purpose of 
the Mexican government is that such conferences 
shall he held in a spirit of the most frank cordiality 
and with an ardent desire to reach a satisfactory 
agreement and one honourable to both countries." 

To this our acting Secretary of State replied as 
follows: 



" In replying, I have the honour to state that 
I have laid your Excellency's note before the Presi- 
dent, and have received his instructions to inform 



MEXICO UNDER CARRANZA 77 

your Excellency that the Government of the 
United States is disposed to accept the proposal 
of the Mexican Government in the same spirit of 
cordiality in which it is made. This Government 
believes and suggests, however, that the powers of 
the proposed commission should be enlarged so 
that, if happily a solution satisfactory to both gov- 
ernments of the question set forth in your Excel- 
lency's communication may be reached, the com- 
mission may also consider such other matters, the 
friendly arrangement oj which would tend to improve 
the relations oj the two countries** 

It was stated at the time in the press that the 
"other matters'' which the United States desired 
the commission to consider were the payment of 
indemnities to American citizens for damages 
sustained in the course of revolutionary activities 
and also an agreement which would protect their 
property there from future exploitation by the 
government and people ; and the truth of this state- 
ment was afterward shown by the course of the 
negotiations. 

The United States was represented on this com- 
mission by Secretary of the Interior Lane, Judge 
Gray of Delaware, and Dr. John R. Mott, three 
of the ablest men in the country. Shortly after 
the commission convened in the Griswold Hotel 
at New London, Connecticut, I visited the hotel 
and remained for several days. While there, the 
President came to New London on his yacht. The 



78 MEXICO UNDER CARRANZA 

commissioners in a body paid their respects to him 
and later he returned the call and was in conference 
with the commission at the hotel for some time. 
On the afternoon of the day of the President's 
call, a member of the commission said to me: 

''The talk of the President to the commission, 
and especially what he said to the Mexican com- 
missioners about the importance of their country 
recognizing and living up to its international ob- 
ligations, was one of the most impressive things 
that I ever listened to." 

The commission remained in session for months 
and during this time the American commissioners 
endeavoured, without success, to secure some agree- 
ment regarding the recognition and protection of 
the rights of our citizens in Mexico. Just how this 
effort was met on the part of the Mexican com- 
missioners is shown by an incident that occurred 
at a session of the commission. Some time after 
the commission adjourned without having been 
able to put a word of agreement in writing, I was 
told by a friend, who had just arrived from the 
City of Mexico, that the friends of Mr. Bonillas, a 
representative of Mexico on the commission, were 
circulating there with great gusto a story that 
during a session of the commission one of the Amer- 
ican members had delivered what was evidently a 
very carefully prepared speech for the benefit of 
the Mexican commissioners in which he dwelt upon 



MEXICO UNDER CARRANZA 79 

the importance, and the necessity, of Mexico's 
recognizing her obligations under international 
law, and concluded with the statement that unless 
Mexico did recognize and live up to her interna- 
tional obligations she could never hope to have the 
respect of the other nations of the world, when, 
quick as a flash, came from Mr. Bonillas on the 
other side of the table : 

"Then the other nations of the world can go to 
hell!" 

Upon meeting one of the American members of 
the commission, afterward I told him of this story 
and asked if anything of the sort had occurred. 
The answer was: 

"The incident occurred exactly as you have 
related it/' 

"Don't you believe that before the Mexican 
commissioners left the City of Mexico they were 
instructed by Carranza to make no commitments 
whatever regarding the protection of American- 
owned property in Mexico, because he had in mind 
at that very time the confiscatory constitution 
which was subsequently enacted at Queretero?" 
I asked. 

" I am absolutely certain of it," was the reply. 

Undoubtedly, this attitude of Mr. Bonillas 
toward his country's international obligations 
showed him to be so worthy a member of the Car- 
ranza government as to suggest his supreme fitness 



8o MEXICO UNDER CARRANZA 

to represent it diplomatically at the capital of the 
nation whose rights under international law it had 
violated and proposed to continue to violate. So 
the climax of the exhibition of boorish manners 
which Mr. Bonillas's friends related with so much 
pride is found in the fact that he was later ap- 
pointed ambassador to Washington and, in pur- 
suance of our policy of "patience" with his govern- 
ment, was, of course, accepted as persona grata in 
that capacity. With such a spirit inspiring the 
Mexican members of the joint commission it is, of 
course, no subject of surprise that its sessions, ex- 
tending over several months, should have resulted 
in exactly nothing. 

But, in the meanwhile, the appointment of the 
commission and its prolonged sessions had acted 
as a sedative, giving time for cooling the burning 
indignation of the American people over the mur- 
der of our soldiers, which undoubtedly was the 
result desired by Carranza when he suggested its 
formation. It also marked another of the count- 
less instances of betrayal of the American Govern- 
ment in its efforts to meet and adjust our differ- 
ences with Mexico by the peaceful means of 
diplomacy rather than by the exercise of force. 

In all the diplomatic negotiations with Germany, 
and the shameful violations of her diplomatic 
pledges to this country which led to the world war, 
there was nothing which for infamous and immoral 



MEXICO UNDER CARRANZA 8i 

violation of diplomatic pledges compares with the 
experience which the United States has had with 
the Carranza administration since it was recognized 
as the de facto government of Mexico. In view of 
the fact that Germany's breach of diplomatic 
agreements with this country rightly resulted 
in a declaration of war, one can hardly under- 
stand why the Carranza regime's shameful viola- 
tions of its diplomatic promises to, and agree- 
ments with, us should have been rewarded by 
recognition as the de jure government of the 
country which it was misgoverning in so terrible 
a way. 

Long before the infamous chapter of violated 
diplomatic agreements was written by Carranza 
we had had similar experiences with the Latin 
Mexicans who have always controlled that country 
which showed their utter lack of diplomatic 
honour. A history of Mexico says: 

"Almost from the commencement of the Mexi- 
can republic, outrages on the persons and property 
of American citizens have been committed and re- 
dress has always been either positively refused, or 
so delayed that both there and in the United 
States the idea became current that such violations 
of the laws of nations were to be overlooked and 
unpunished. 

"This course on the part of Mexico was es- 
pecially disgraceful, as the United States had been 
the first nation to recognize her separate existence. 



82 MEXICO UNDER CARRANZA 

and American citizens had fought well in more 
than one of the battles of her revolution. * * ♦ 

"This state of things was endured patiently by 
the Government and people of this country, be- 
cause both the one and the other were unwilling 
to add to the burdens of Mexico, and hoped that 
a calmer day would break over the sister repub- 
lic, and a season of peace at home enable her to 
attend to her foreign obligations. 

"On the 5th of April, 183 1, a treaty of amity 
and navigation was concluded between the re- 
publics; but almost before the ink on the parch- 
ment was dry, fresh outrages were perpetrated, so 
that within six years after that date. General 
Jackson, in a message to Congress, declared that 
they had become intolerable, and that the honour 
of the United States required that Mexico should be 
taught to respect our flag. 

" He declared that war should not be used as a 
remedy *by just and generous nations confiding 
in their strength for injuries committed, if it can 
be honourably avoided'; and added, *it has oc- 
curred to me that, considering the present embar- 
rassed condition of that country, we should act 
with both wisdom and moderation, by giving to 
Mexico one more opportunity to atone for the 
past, before we take redress into our own hands. 
To avoid all misconception on the part of Mexico, 
as well as to protect our national character from 
reproach, this opportunity should be given with 
the avowed design and full preparation to take im- 
mediate satisfaction, if it should not be obtained 
on a repetition of the demand for it. To this 
end I recommend that an act be passed authoriz- 



MEXICO UNDER CARRANZA 83 

ing reprisals, and the use of the^ naval force of the 
United States, by the executive, against Mexico, 
to enforce them in the event of a refusal by the 
Mexican government to come to an amicable ad- 
justment of the matters in controversy between us, 
upon another demand thereof, made from on board 
of one of our vessels of war on the coast of Mexico'." 

Congress granted the authority to President 
Jackson which he had requested to settle our dif- 
ferences with Mexico. When that nation found 
that our Government was in earnest and came to 
fear the use of force, it suggested the formation of 
a joint commission, as Carranza did under similar 
circumstances. The commission was appointed, 
and the history of its dealings is so much an anti- 
type of the record made by the joint commission 
appointed at the suggestion of the Carranza gov- 
ernment that it appears to justify the following 
additional quotation from the historian referred 
to: 

"On the nth of April, 1839, a joint commission 
was appointed, which, however, was not organized 
until August II, 1840. The powers of the com- 
mission by the act creating it, terminated in Feb- 
ruary, 1842, and Mr. Polk, in his last annual mes- 
sage, thus characterizes its conduct : 

"Tour of the eighteen months were consumed 
in preliminary discussions on frivolous and dilatory 
points raised by the Mexican commissioners; and 
it was not until the month of December, 1840, 



84 MEXICO UNDER CARRANZA 

that they commenced the examination of the 
claims of our citizens upon Mexico. Fourteen 
months only remained to examine and decide upon 
these numerous and complicated cases. In the 
month of February, 1842, the term of the commis- 
sion expired, leaving many claims undisposed of 
for want of time. The claims which were allowed 
by the board, and by the umpire authorized by 
the convention to decide in case of disagreement 
between the Mexican and American commission- 
ers, amounted to two million twenty-six thousand 
one hundred and thirty-nine dollars and sixty- 
eight cents. There were pending before the um- 
pire when the commission expired additional claims 
which had been examined and awarded by the 
American commissioners, and had not been allowed 
by the Mexican commissioners, amounting to 
nine hundred and twenty-eight thousand six hun- 
dred and twenty-seven dollars and eight cents, 
upon which he did not decide, alleging that his 
authority had ceased with the termination of the 
joint commission. Besides these claims, there 
were others of American citizens, amounting to 
three million three hundred and thirty-six thousand 
eight hundred and thirty-seven dollars and five 
cents, which had been submitted to the board, 
and upon which they had not time to decide before 
their final adjournment. 

" The sum of two million twenty-six thousand 
one hundred and thirty-nine dollars and sixty- 
eight cents, which had been awarded to the claim- 
ants, was a liquidated and ascertained debt due by 
Mexico, about which there could be no dispute, 
and which she was bound to pay according to the 



MEXICO UNDER CARRANZA 85 

terms of the convention. Soon after the final 
awards for this amount had been made, the Mex- 
ican Government asked for a postponement of the 
time of making the payment at the time stipulated. 

"'In the spirit of forbearing kindness toward a 
sister republic, which Mexico has so long abused, 
the United States promptly complied with her 
request. A second convention was accordingly 
concluded between the two governments on the 
30th of January, 1843, which upon its face declares 
that *'this new arrangement is entered into for the 
accommodation of Mexico." By the terms of this 
convention, all the interest due on the awards which 
had been made in favour of the claimants under the 
convention of the iith of April, 1839, was to be 
paid to them on the 30th of April, 1843, and the 
** principal of the said awards, and the interest ac- 
cruing thereon," was stipulated to "be paid in five 
years, in equal instalments every three months." 
Notwithstanding this new convention was en- 
tered into at the request of Mexico, and for the 
purpose of relieving her from embarrassment, the 
claimants have only received the interest due on 
the 30th of April, 1843, and three of the twenty 
instalments. 

" 'Although the payment of the sum thus liquid- 
ated, and confessedly due by Mexico to our citi- 
zens as indemnity for acknowledged acts of outrage 
and wrong, was secured by treaty, the obligations 
of which are ever held sacred by all just nations, yet 
Mexico has violated this solemn engagement by 
failing and refusing to make the payment. The 
two instalments due in April and July, 1844, under 
the peculiar circumstances connected with them. 



86 MEXICO UNDER CARRANZA 

have been assumed by the United States and dis- 
'charged to the claimants, but they are still due by 
Mexico. But this is not all of which we have just 
cause of complaint. To provide a remedy for the 
claimants whose cases were not decided by the 
joint commission under the convention of April 
the nth, 1839, it was expressly stipulated by the 
sixth article of the convention of the 30th of Janu- 
ary, 1843, that 'a new convention be entered into 
for the settlement of all claims of the Government 
and citizens of the United States against the re- 
public of Mexico which were not finally decided by 
the late commission, which met in the city of Wash- 
ington, and of all claims of the government and 
citizens of Mexico against the United States. 

"*In conformity with this stipulation, a third 
convention was concluded and signed at the City 
of Mexico on the 20th of November, 1843, by the 
plenipotentiaries of the two governments, by which 
provision was made for ascertaining and paying 
these claims. In January, 1844, this convention 
was ratified by the Senate of the United States with 
two amendments, which were manifestly reason- 
able in their character. Upon a reference to the 
amendments proposed to the government of Mex- 
ico, the same evasions, difficulties, and delays were 
interposed which have so long marked the policy of 
that government toward the United States. It 
has not even yet decided whether it would or would 
not accede to them, although the subject has 
been repeatedly pressed upon its consideration.' 

** By failing to carry out the stipulations of this 
last convention, Mexico again outraged the Gov- 
ernment of the United States." 



MEXICO UNDER CARRANZA 87 

We see from the foregoing that President Wil- 
son, in his dealings with the present government 
in Mexico, has met with the same experience that 
several other chief executives of our country have 
had. President Wilson has spoken of his efforts 
to show "patience" in his dealings with the pres- 
ent government of Mexico, and surely it has been 
amply exhibited in condoning the most outrageous 
violations of rights ever committed by the people 
and government of one country against the people 
and government of another. 

Our experience with Mexico, begun nearly a 
hundred years ago and continuing until it culmi- 
nated in war, proved that there was a limit to our 
forbearance. For some time after the close of the 
Mexican War, the rights of American citizens were 
respected by the Mexicans. But it did not take 
long for'a people so prone to ignoring and violating 
the rights of others to forget the lessons of the war 
and again begin the violation of the rights of Amer- 
ican citizens both along the border and in Mexico. 
The persistent aggressions upon our citizens 
along the border resulted in the organization by 
the state of Texas of a force which afterward be- 
came famous under the name of "Texas Rangers/' 
which was used to afford to the citizens of that 
state the protection which they did not get from 
the soldiers of the nation. Finally conditions 
became so bad as to provoke from Secretary of 



88 MEXICO UNDER CARRANZA 

State Evarts in 1878 a communication to the 
Mexican Government in which he said: 

"The first duty of a government is to protect life 
and property. This is a paramount of Hgation. 
For this governments are instituted, and govern- 
ments neglecting or failing to perform it become 
worse than useless. This duty the Government of 
the United States has determined to perform to the 
extent of its power toward its citizens on the border. 
It is not solicitous, it never has been, about the 
methods or ways in which that protection shall be 
accomplished, whether by formal treaty stipula- 
tion, or by informal convention; whether by the 
action of judicial tribunals, or whether by that of 
military forces. Protection, in fact, to American 
lives and property is the sole point upon which the 
United States are tenacious." 

This unmistakable intimation that our Govern- 
ment proposed thereafter to live up to its duty, as 
thus defined, in its dealing with Mexico moved 
Diaz to take steps to prevent the occurrence of 
further outrages along the border and to provide 
proper protection for Americans in the interior 
also. This condition continued throughout the 
Diaz regime and, apparently, might have been 
continued had our Government in its dealings with 
the Mexican revolutionists maintained the position 
assumed by Secretary Evarts. This, however, 
was not done. Every effort was made to avoid 



MEXICO UNDER CARRANZA 89 

any clash between Mexican and American forces. 
Our soldiers and civilians in border towns were 
killed by bullets from contesting factions in Mexico 
but our armed forces were forbidden to return the 
shots. Eighteen American citizens were killed 
in El Paso, about a score of soldiers and civilians 
at Naco, and numbers at other points. 

No Mexican can understand or appreciate the 
sort of forbearance with which our Government 
under both Republican and Democratic adminis- 
trations has treated the invasion of the rights of 
our citizens on the border. Instead of interpreting 
it as an exercise of patience and consideration for 
the Mexican people, they have regarded it as a 
manifestation of cowardice and it has merely 
encouraged them to further invasions of our rights. 
Shortly after the killing of our soldiers at Carrizal 
and because it was not followed by the punish- 
ment of those who were guilty of that crime, a 
prominent paper in an interior Mexican city pub- 
lished an article in which it was said that the ex- 
perience at Carrizal showed how easily a Mexican 
army could march through American territory to 
Washington, and dwelt with some gusto upon the 
wealth of loot that would reward such an expedi- 
tion. 

As a result of the course which our Government 
had adopted for some time after it recognized the 
Carranza regime as the de facto government of 



90 MEXICO UNDER CARRANZA 

Mexico, conditions along the border became as bad 
as, or worse than they were during the pre-Diaz 
period. Just how bad they were is shown in the 
letter of Secretary Lansing quoted in Chapter IV. 
They finally became so intolerable and resulted in 
the loss of so many American lives and the destruc- 
tion of so much American property at the hands 
of invading Mexican bandits that in April, i9i8,two 
hundred and fifty owners of ranches along the 
Texas border held a meeting at Van Horn in that 
state and spent several days discussing measures 
to be taken for the protection of their homes, 
families, and property. Later, our Government 
seems to have changed its policy and to-day along 
the border shot for shot is exchanged whenever a 
bullet comes across the line. This has resulted in 
a distinct decrease in such offenses. 

In view of the result that has been achieved by 
the policy of patience maintained toward Mexico 
since the beginning of revolutionary activities the 
query is suggested: Would our officials in Wash- 
ington have maintained such a policy in dealing 
with the lawless elements represented by the Car- 
ranza government at the expense of our citizens, 
had they known of the results of the same policy 
adopted seventy-five years ago and followed for a 
number of years, as set forth in the foregoing 
quotations from the messages of Presidents Jack- 
son and Polk? 



MEXICO UNDER CARRANZA 91 

History shows that throughout the whole career 
of Mexico as an independent nation except during 
the Diaz period, the Latin-Mexican element re- 
sponsible for its government has never failed to 
attempt to violate any international agreement 
or obligation when it thought its interests would 
be served by such a course. The history of our 
patience and forbearance before the Mexican War 
reads like the story of the dealings between our 
Government and Mexico from the period in Presi- 
dent Taft's administration, when revolutionary 
activities began, to the present time. The only 
difference is that we have secured even less sat- 
isfaction as the result of our policy of "patience" 
than was obtained previous to the Mexican War. 
In the meanwhile, these experiments with the law- 
less, dishonest, and criminal element represented 
by the Latin-Mexican governing class, have been 
paid for by the lives of hundreds of American 
citizens and the destruction of hundreds of mil- 
lions of dollars' worth of American property. 

Previous to the thirty-four years of orderly 
government enforced by Diaz few Americans 
resided in Mexico and little American capital had 
been invested there. But, encouraged by the law 
and order maintained by the Diaz government 
and by its invitations to invest in that country, 
our people had gone into Mexico in considerable 
numbers. It is estimated that at the beginning 



92 MEXICO UNDER CARRANZA 

of the revolutionary period in 1910 at least forty 
thousand Americans were making their homes 
there. Americans had invested their Hves and 
hundreds of millions of dollars of their capital 
in enterprises which, while profitable to them- 
selves, were of enormous economic value to the 
country with which they had cast their fortunes. 

These thousands of Americans and hundreds of 
millions of their property are the counters with 
which the game of "patience" has been played 
with Mexico by our Government for seven years. 
And, if one may continue the simile, our Gov- 
ernment has been playing a game with the cards 
marked against it, for we have practised the 
diplomacy of an honest, moral people, while the 
Mexicans have shown that disregard for every 
diplomatic agreement and every obligation under 
international law which should have been expected 
from the Latin-Mexican element, which has earned 
the reputation of being the most congenitally dis- 
honest and immoral race in the world to-day. 
This would appear to be strong language were it 
not so plainly justified by the history of nearly a 
hundred years. I believe that in what follows I 
shall amply establish its truth and justice. 



CHAPTER III 

Character of Foreign Investments in Mexico, Particth- 
larly Those of Americans — Relation of These Investments 
to the Economic Condition of the Country — Dealings 
Between Foreign Investors and the Mexican Government 

A BOUT the end of Diaz's long administration 
/\ Marion Letcher, American Consul at 
£ 1l Chihuahua, compiled a statement which 
was filed in the State Department at Washington 
showing the total wealth of Mexico to be 
$2,4 34,24 1, 422; of which Americans owned 
$1,057,770,000; English, $32 1,302,800; French, 
$143,446,000; all other foreigners, $118,535,380; 
Mexicans, $792,187,242. Senator Fall, of New 
Mexico, who is well informed on Mexican affairs, 
asserts that the correct figures for English invest- 
ments are more than double those given by Consul 
Letcher; and that the figures for the Americans 
should also be largely increased. However this 
may be, the Consul's compilation will at least serve 
to give an idea of the relative importance of for- 
eign capital in developing the resources of Mexico. 
The fact is that foreigners have developed Mexico; 
have built its railroads, opened its mines, con- 

93 



94 MEXICO UNDER CARRANZA 

structed and operated its factories^, opened up its 
oil wells, introduced modern machinery and im- 
plements, and have given employment to prac- 
tically all the native labour in the country, except 
that engaged at from 1 5 to 50 cents a day on the 
plantations, farms, or ranches. 

The point of present interest is that these large 
foreign investments, and their influence in develop- 
ing natural resources and affording a livelihood to 
all who were willing to work, are paraded as one 
of the fundamental grievances of the Carrancistas 
to redress which they have confiscated all the prop- 
erty that could be converted into cash without 
too much effort and have greatly damaged or 
destroyed substantially all the rest. Conscious 
that such proceedings are not considered exactly 
good form in the countries whence the invest- 
ments came, the Carrancistas have expended 
a good deal of ingenuity in endeavouring to justify, 
or at least to excuse, their peculiar ideas regarding 
the rights of property. Or it may be that these 
endeavours have been prompted less by prickings 
of conscience than by a fear that if the whole truth 
were known there might be some inconvenient 
insistence upon restitution and protection for 
whatever property is left in accessible shape and 
for such foreigners as still survive. 

The Carrancistas have been particularly zealous 
in their efforts to win American sympathy. To 



MEXICO UNDER CARRANZA 95 

this end they have maintained two centres of 
propaganda in the United States. One, located 
in Washington, issues a monthly journal and press 
sheets at frequent intervals describing in roseate 
terms alleged conditions in Mexico and descant- 
ing upon the beneficent effects of Carranza's sway. 
This material is circulated among members of 
Congress, Government officials and others sup- 
posed to be more or less influential. 

Every number of these publications contains 
numerous manifestations of one of the most prom- 
inent vices of the Latin element of Mexico, and 
that is mendacity. Probably a sufficient example 
of this characteristic may be found in a statement 
in one of these publications to the effect that a 
recent school census taken in Mexico City showed 
that a larger percentage of children of school age 
attended the public schools in that city than were 
attending the public schools of the city of New 
York. Of course, this statement to any person 
acquainted with conditions there was palpably 
false. Its falseness was quickly demonstrated by 
news from Mexico City, published in the daily 
papers of this country a short time after the item 
referred to appeared, to the effect that many of the 
schools there had been closed because the govern- 
ment found itself unable to pay the salaries of the 
teachers. 

Another centre of Carranza propaganda was 



96 MEXICO UNDER CARRANZA 

established in New York City shortly after the 
beginning of the Carranza revolution, by what was 
called the "Latin-American News Association." 
In some way unknown my name appears to have 
been entered upon the mailing list of this associa- 
tion, and I have received numerous pamphlets 
devoted to various phases of Mexican affairs. In 
one of these appears the following statement: 

** Mexico has been the happy hunting ground of 
the adventurer since the days of the Spanish Con- 
quest. Egypt, Morocco, Tunis, South Africa, 
do not compare with it as a treasure box. Govern- 
ment has always meant merely an organized sys- 
tem of robbery and exploitation. It gave the 
people nothing, it took everything the people had. 
It taxed them in the most ruthless ways; it spent 
the taxes for private purposes and profit. The 
courts were merely another instrument for enforc- 
ing serfdom along with the army." 

As we shall see, this statement is entirely true 
as applied to the Latin masters of the Mexican 
people and the sort of government which they 
were accorded by these masters during the first 
three hundred years of their control. The pam- 
phlet continues: 

" Diaz reduced the process to a scientific system. 
He termed it 'developing the country.' The con- 
cession seekers flocked to Mexico with the coming 



MEXICO UNDER CARRANZA 97 

of Diaz to power in 1876. He owed them every- 
thing, for they made him master of Mexico. They 
enjoyed thirty-four years of almost uninterrupted 
freedom until the flight of Diaz to Paris in 19 10. 
. . . He paid his first debts by concessions for 
the building of two railroad lines from the Texas 
border to Mexico City. Land was given for the 
right of way, together with a subsidy of J 14,000 per 
mile on level country and $35,000 per mile in rough 
country. * * * 

*' During all these years, the United States was 
unhappily the bulwark of the exploiting interests. 
The Mexican people feared American intervention 
more than anything else and this fear kept them 
from revolution. And the colossal grants and sub- 
sidies for railroads, mines, oil, gold, silver, copper 
and land, judiciously distributed, identified the 
United States* State Department, the Senate, the press, 
and the people of the United States with Diai no mat" 
ier what his outrages might be, 

*'The Mexicans want to get back their lands 
which have been taken from them by bribery or 
machine guns. And they are doing it. They 
want to get back their oil wells, gold and silver 
mines, and the tremendously rich copper deposits 
of the north, and they are doing it." 

The name of the author of the pamphlet is not 
given, and there is no means of ascertaining the 
race to which he belongs. It is certain, however, 
that the paragraphs quoted indicate two of the 
worst characteristics of the element which has 
given Mexico bad government for four hundred 



98 MEXICO UNDER CARRANZA 

years, and these are mendacity and lawless greed. 
It will be noted that the author of the article does 
not hesitate to allege that the grants and sub- 
sidies given by the Diaz government were success- 
fully used as bribes to influence the State Depart- 
ment, the Senate, the press, and the whole people 
of the United States. This may be accepted as a 
fair measure of the truthfulness of the Carranza 
propaganda with which the country has been 
flooded. What the writer really meant, although 
he did not say it, was that the Mexicans had taken, 
and -propose to continue to take hy the strong hand, 
the property acquired hy citizens of the United States 
and other foreigners in their country. 

It is my purpose to show that no citizen of the 
United States, during the Diai regime, ever acquired, 
hy grant or suhsidy, a dollar's worth of oil territory, 
gold, silver, or copper mines, or land; and that the 
railroad subsidies from which American citizens 
benefited were probably the most moderate ever 
given for such value as was received by Mexico in 
the building of her railroads, and were very much 
less than subsidies granted by our own country 
for a like purpose. Also, that in the use of the 
subsidies by the recipients of them a degree of 
honesty was exhibited which we cannot claim to 
have been exercised in handling subsidies granted 
for railroad construction in the United States. As 
an illustration of the reckless falsehoods which 



MEXICO UNDER CARRANZA 99 

have been uttered about the deah'ngs of our people 
with Mexico, and which, alas, have found credence 
to which they were not entitled among men in 
responsible positions in our Government, may be 
cited the history of oil development. 

PETROLEUM DEVELOPMENT 

The existence of petroleum in what is now the 
state of Vera Cruz, was known before the Spanish 
conquest. Asphaltum, produced by the drying 
on the surface of exudes from these oil deposits, 
was used before the time of Cortez for making the 
floors of the Aztec temples. The Latin inhabi- 
tants of Mexico knew of the existence of these oil 
exudes from the time that they first occupied the 
country. Notwithstanding this fact, and the 
further fact that since the development of oil in 
the United States it was known that exudes of this 
character indicated the presence of petroleum 
beneath the surface, no citizen of Mexico ever 
showed the possession of energy and initiative 
enough to attempt the development of these oil 
measures. It remained for two Americans, 
Messrs E. L. Doheny and C. A. Canfield, citizens 
of Los Angeles, to undertake the development 
which has added enormously to the economic 
wealth and welfare of Mexico, and which has con- 
ferred a great benefit upon the civilized world. 
These men, who had made fortunes in petroleum 



loo MEXICO UNDER CARRANZA 

development in the United States, learned of the 
existence of the exudes in what is now known as 
the oil territory of Mexico. They visited this 
section, which at the time was largely a jungle, 
and convinced themselves of the existence of 
subterranean oil measures. These measures were 
upon lands which were held in private ownership, 
under titles dating largely from the time of the 
Spanish conquest, four hundred years before. In 
their oil developments they of course, were forced 
to deal with these private owners, inasmuch as 
Article lo of the Mining Law of Mexico at that 
time provided: 

Art. id. The following substances are the ex- 
clusive property of the owner of the land, who may 
therefore develop and enjoy them, without the 
formality of claim or special adjudication: 

I — Ore bodies of the several varieties of coal. 



IV — Salts found on the surface, fresh and salt 
water, whether surface or subterranean, petroleum 
and gaseous springs, or springs of warm medicinal 
waters. 

Shortly after Diaz came into power he induced 
the government to adopt the plan of granting for a 
stated term immunity from import and export 
tariff taxes upon all material brought into the 



MEXICO UNDER CARRANZA loi 

country and used in founding any new business 
enterprise, which would be for the direct economic 
benefit of the nation, and all products of such 
business that should be shipped out. In this, of 
course, the nation did nothing further than to-day 
is being done by probably a hundred enterprising 
cities in our own country where manufacturing 
enterprises are attracted by the grant of immunity 
from local taxes for a certain number of years, or, 
where the law prohibits such favours being granted 
by municipal governments, by contributions to the 
cost of land for factories, and other advantages. 
Messrs. Doheny and Canfield went to the gov- 
ernment and calling attention to the fact that at 
that time Mexico had no oil wells and that fuel was 
one of the great economic needs of the country, 
announced that they proposed to invest a large 
sum in endeavouring to develop the petroleum 
deposits, and asked to be granted a concession 
which would enable them to conduct their business 
for a term of years free of national import and ex- 
port duties. As the law providing for the granting 
of such a concession required that the enterprise 
should represent a new business of a character not 
developed, before they could secure the concession 
for which they asked they were compelled to ob- 
tain a certificate from the government of every 
state in the Mexican Union certifying that no oil 
development had been made in any such state. 



I02 MEXICO UNDER CARRANZA 

in order to establish the fact that the business 
which they proposed to conduct would really add 
a new business to the industrial life of Mexico. 
Having obtained these certificates, they secured 
a ''concession" which granted to the enterprise of 
developing petroleum, which they proposed to 
conduct, immunity from all national import and 
export taxes on any material which they might 
bring in for use in their business, or any product 
thereof which they might ship out of the country 
for a period of ten years. This was the sole ad- 
vantage ever given Mr. Doheny and his associates 
by the Mexican Government. Having obtained 
this concession, they then proceeded to invest 
several millions of dollars in the purchase of land 
and clearing it, drilling wells, providing pipe lines, 
tankage facilities, refineries, vessels for transport- 
ing oil, and all the other equipment required for the 
successful prosecution of the business which even- 
tually added greatly to the economic wealth of 
Mexico. In order to do this, of course, they staked 
millions of dollars upon the chance of finding oil 
in paying quantities. 

There is no doubt that, owing to the habit of 
speaking of work done by Americans in the de- 
velopment of petroleum and other enterprises 
of that character as "concession/' there is a 
general impression that the lands have been ob- 
tained as a gift from the Government, perhaps 



MEXICO UNDER CARRANZA 103 

with other valuable privileges in addition. Pos^ 
sibly this erroneous impression may be traced in 
the first place to the translation of the Spanish 
word " concesidfij" which means merely a franchise 
or a permit to do business, as the equivalent of the 
English word "concession/' which means some- 
thing quite different. 

After the discovery of oil in paying quantities 
by Mr. Doheny and his associates the attention of 
other large oil interests was attracted to the Mexi- 
can field and in due time the Standard Oil Com- 
pany, the Waters-Pierce Company, and the Eng- 
lish interests represented by Lord Cowdray, as 
well as other less important organizations, secured 
territory in the oil fields by purchase or lease and 
commenced the production of petroleum. Not 
in one instance, however, did any American com- 
pany secure any part of its oil territory as a 
grant, gift, or concession from the Mexican Gov- 
ernment, although the contrary has been asserted 
in numberless false-propaganda pamphlets and 
articles that have been distributed by the Mexican 
revolutionists in this country. 

Much of the oil territory still belongs to Mexican 
citizens and is being operated by various companies 
under leases from the land owners, just as hun- 
dreds of thousands of acres of oil land belonging 
to farmers have been operated under leases pro- 
viding for stipulated royalty payments in the 



104 MEXICO UNDER CARRANZA 

various oil-producing states of our own country. 
These Mexican owners of petroleum lands have 
held meetings at Tampico, and have submitted 
vigorous protests to the Carranza government 
against Article 27 of the new constitution, which 
is being used by the Carranza administration in an 
attempt to rob them of the contents of their lands 
which the law has heretofore assured to them; but, 
as the oil industry is to-day one of the few in that 
country that are paying and as the Carranza gov- 
ernment is constantly in need of money for the 
use of its dissipated army officers, efforts to con- 
summate the scheme of robbery under the so-called 
new constitution have by nomeans been abandoned. 
The millions of dollars which American oil pro- 
ducers risked in their enterprises were of enormous 
economic value to the country. The oil from 
their wells, and from those developed later by other 
foreign interests, furnished fuel for the Mexican 
railroads, a considerable mileage of which was 
controlled by the government, cheaper and of a 
better quality than they had ever been able to 
obtain before. It furnished fuel which resulted 
in the establishment of gas plants in Mexico City 
and elsewhere — an economic development of pe- 
culiar value, on account of the moderate climate 
in which gas furnishes the cheapest and best pos- 
sible fuel for household purposes. These plants 
have all been ruined by the revolution. The 



MEXICO UNDER CARRANZA 105 

asphalt residuum from the distillation of the crude 
oils furnished paving materials, with the result 
that numerous Mexican cities that had never 
known a yard of good pavement became the pos- 
sessors of beautifully paved streets. In addition, 
it has furnished employment for thousands of 
Mexican workmen at wages several hundred per 
cent greater than any that they had ever received 
from their own countrymen. Furthermore, the 
"concession" obtained by Mr. Doheny and his 
associates conferred no immunity from state or 
municipal taxes. 

In entering upon the development of oil in Mex- 
ico, these citizens of the United States and other 
foreigners did nothing more than was done some 
years ago by a great European corporation, 
financed by the Rothschilds, known as "The 
Shell Oil Company" (Royal Dutch), in securing 
large areas of oil territory in the state of California; 
the only difference being that production in this 
territory had been developed as a profitable busi- 
ness before these foreign interests acquired their 
property, while those Americans who first entered 
upon oil development in Mexico assumed all the 
risks of failure which confront every pioneer in a 
mining venture. The foreign company which has 
acquired oil properties in California sells some of 
its products in this country and ships quantities 
of it to other markets, while all the profits of the 



io6 MEXICO UNDER CARRANZA 

operation, of course, go to the stockholders abroad. 
Yet, any citizen of the United States who would 
complain that the Shell Oil Company has done a 
deadly wrong by acquiring and exploiting oil lands 
in this country, and should demand therefore, 
that its property be confiscated, would be re- 
garded as either a lunatic or a criminal. However, 
the Carranza party fmding that foreigners, by 
their intelligence and enterprise and the invest- 
ment of millions of dollars, have developed a 
natural resource into a valuable economic asset, 
decides that those foreigners have imposed a griev- 
ous wrong upon the country which it has at- 
tempted to cure by adopting Article 27 of the Con- 
stitution of 191 7, which provides: 

" In the nation is vested direct ownership of all 
* * * solid mineral fuels; petroleum and all 
hydrocarbons — solid, liquid or gaseous." 

Under the authority of that article the Car- 
ranza government is now attempting to make the 
petroleum companies pay it " rentals and royalties '* 
for the privilege of taking the oil from lands that 
have been in the possession of private owners for 
nearly four hundred years, and were acquired for a 
price supposed to be full value paid by the for- 
eigners as the first step in creating an enterprise 
which has benefited the people of Mexico in a 



MEXICO UNDER CARRANZA 107 

hundred ways. What would the farmers of Penn- 
sylvania, West Virginia, Oklahoma, Texas, and 
California, upon whose lands oil has been de- 
veloped, think if the people of their states should 
adopt constitutions providing that the oil was 
public property and insist upon collecting the 
royalty which the private owners of the land have 
heretofore received? 

Of course, no people that is not so congenitally 
immoral as to be incapable of appreciating the 
moral character of an act would undertake to 
perpetrate such a wrong upon the owners of private 
property as the Carrancistas are endeavouring to 
inflict upon the owners of oil lands. But it is safe 
to say, that, so long as the present government 
feels that it has the power to carry out this scheme 
of robbery, no protest made by native or foreign 
landowner will be of any avail. 

Our own country has recently instructed its 
diplomatic representative in Mexico City to make 
such a protest and it has been done. It would 
appear that our country is prepared to use force 
to make that protest effective, to prevent the 
robbery of American citizens. 

RAILROAD SUBSIDIES AND FOREIGN INVESTMENTS 
IN MEXICAN RAILROADS 

Apologists for the confiscatory actions of the gov- 
ernment now in power in Mexico have had a great 



io8 MEXICO UNDER CARRANZA 

deal to say about the concessions for building rail- 
roads granted to foreigners by Diaz. They have 
denounced these concessions in unmeasured terms 
as among the greatest wrongs inflicted upon the 
Mexican people by that government. These 
apologists for the acts of the Carranza government 
in taking possession of the railroads and failing to 
pay either interest upon their bonds or dividends 
to stockholders, allege that these roads were origi- 
nally built at the cost of the public. 

In investigating the history of subsidies for rail- 
road construction in Mexico, it is well to bear in 
mind that prior to the period when the principal 
concessions were granted, almost all railroads in 
our own country were the recipients of subsidies 
for the purpose of defraying a part, or all, of the 
cost of their construction. This particularly 
applies to the West where, on account of the coun- 
try being sparsely settled and recognition of the 
fact that years might elapse before sufficient busi- 
ness could be developed to make the operation of 
the railroads profitable, it was understood that no 
such great public improvement could be made 
at the entire cost of private investors and that 
these improvements promised to be of such great 
value to the nation at large as well as to the sections 
of the country directly served, as to justify the 
public in contributing to their construction. It is 
probably not an over-statement to say that every. 



MEXICO UNDER CARRANZA T09 

county and city in the Middle-Western states, for 
whose service railroads were constructed, contrib- 
uted something in the form of subsidies; and, as 
we shall presently see, the National Government 
gave enormous sums to the Union Pacific and the 
Central Pacific companies. 

Similar conditions in Mexico produced similar 
results in railroad construction. But those who 
now seek to excuse their confiscation of all the 
great investments made by foreigners before or 
during the Diaz regime, have sought to charge 
Diaz and his government with the responsibility 
for all subsidies granted to Mexican railroads. In 
point of fact, the encouragement of railroad con- 
struction in Mexico by subsidy was entered upon 
years before Diaz came into power in 1876, and 
was an important part of the efforts made by the 
great patriot, Juarez, to improve native land and 
elevate the condition of his countrymen. A 
history of Mexico says: 

"While it would be difficult to determine exactly 
the date at which Mexico emerged from her con- 
dition of insularity and took her place among the 
nations of the world, it would not come amiss to 
mention that under the wise administration of 
Senor Lerdo she certainly laid the foundation for 
her coming prosperity. That marvel of engin- 
eering skill, the Mexican Railroad, which had been 
in progress of construction sixteen years, was 



no MEXICO UNDER CARRANZA 

formally opened in January, 1873, and the coast of 
Mexico at Vera Cruz was connected with its capi- 
tal. By a decree of Congress in 1874 [two years 
before Diaz came into power] a concession was 
granted for another line northwardly from the City 
of Mexico, which was the initial step taken in the 
great movement connecting the capital with the 
chief cities of the United States. Roads and tele- 
graph lines were now projected in all directions; 
commerce, both external and internal, developed 
with great rapidity, and in the fiscal year of 1878 
the exports from Vera Cruz alone amounted to 
more than J 16,000,000." 

It may be noted in passing that the line referred 
to by the historian when he says: "By decree of 
Congress in 1874 a concession was granted for 
another line northwardly from the City of Mex- 
ico," is one of the lines named in a Carranza prop- 
aganda pamphlet which alleges that Diaz "paid 
his first debts by concessions for the building of 
two railroad lines from the Texas border to Mexico 
City." The fact is that the concession for this 
line was granted under the administration of Pres- 
ident Lerdo de Tejada, two years before Diaz came 
into power. 

The most important railroad concession and 
subsidy granted by the Diaz government was for 
the line v/hich subsequently became known as the 
Mexican Central and this on account of its im- 
portance and extent, may be taken as being fairly 



MEXICO UNDER CARRANZA in 

illustrative of that character of all. It is of par- 
ticular interest to Americans for the reason that 
the company which built the railroad was organ- 
ized by Boston capitalists. For these reasons, the 
law embodying this concession, given in Ap- 
pendix I, will repay careful study by those who are 
desirous of knowing the exact truth about Mexican 
railroad concessions and subsidies about which so 
much has been said. It will be noted, as among 
the most important provisions of this law, that the 
concession provides: 

First : that at the end of ninety-nineyears the road 
shall revert to the nation free of all encumbrances. 

Second: that the mails were to be carried free 
by the proposed railroad during the life of the 
concession, to wit: ninety-nine years. 

Third: that maximum tariffs for the carrying 
of freight and passengers are named in the con- 
cession which, by comparison with the rates 
charged for years by our own Western railroads 
constructed with the aid of government subsidies, 
will be found to have been very much lower than 
the latter. 

Fourth: the government gave to the company 
a subsidy of $g,^oo for each kilometre of con- 
structed road, equalling $15,311 per mile, pay- 
ment of which should not commence until after 
the completion of the first one hundred and fifty 
kilometres. 



112 MEXICO UNDER CARRANZA 

In order that a comparison may be made of the 
terms upon which the respective governments 
aided railroad construction in Mexico and in our 
own country, the grants by the U. S. Government 
to the Union Pacific Company and the Central 
Pacific Company, are set forth in Appendix II. 
By this it will be seen that in addition to an out- 
right gift to the companies of 12,800 acres of gov- 
ernment land per mile of railroad constructed, a 
subsidy was granted in the form of a cash loan 
*' equal to $16,000 per mile for that portion of the 
line between the Missouri River and the base of 
the Rocky Mountains; $48,000 per mile for a dis- 
tance of one hundred and fifty miles through the 
mountain range; $32,000 per mile for the distance 
intermediate between the Rocky Mountains and 
the Sierra Nevada range; $48,000 per mile for the 
distance of one hundred and fifty miles through 
the Sierra Nevadas/' 

The original act provided that the cash subsidy 
should be a first mortgage upon the road, but by a 
subsequent amendment it was made a second 
mortgage, the company being authorized to issue 
its own bonds to an amount equal to the Govern- 
ment's issue as a first mortgage on the lines. It 
will be noted that there is no provision for any 
reversionary interest of the Government in these 
lines, for which the aid afforded was much greater 
than any subsidy ever granted by the Mexican 



MEXICO UNDER CARRANZA 113 

Government and no provision was made for carry- 
ing mails free. There was a provision for the 
transportation of United States troops and this 
stipulation, it is said, was inserted because it was 
recognized that probably United States troops 
would have to be moved over the lines for their 
protection against Indians. Even this small 
benefit to the Government was afterward reduced 
by a ruling that the stipulation regarding the 
transportation of troops meant only that there 
should be no charges for trackage, but did not 
oblige the company to furnish cars free. It is also 
worth while for those who appear to feel that Mex- 
ico should be rescued from the consequences of 
improvident railroad subsidies granted, to consider 
the manner in which the subsidies were dealt with 
by the interests building the Mexican and the 
American railroads respectively. 

Nothing with which foreigners have been con- 
nected in Mexico has been more bitterly denounced 
by Carranza propagandists than the railroads built 
by American investors with the aid of subsidies. 
One of the bitterest and most mendacious of these 
denunciations appears in a somewhat portentous 
volume by DeLara and Pinchon published in New 
York under the title of "The Mexican People: 
Their Struggle for Freedom," a few months after 
the Carranza revolution began. In a chapter 
entitled "The Railways" are some statements 



114 MEXICO UNDER CARRANZA 

which we quote as examples of the kind of prop- 
aganda circulated by the Carrancistas. The 
italics appear as in the book: 

"Not a dollar of American capital has been ex- 
pended anywhere or at any time in the building 
of Mexican railroads. They were built entirely by 
Mexican capital. And what is more, they were so 
immensely oversubsidized, that in many cases they 
were built solely for the sake of the subsidy, and in 
such a fashion as to be useless for transportation: 
e.g., the lines from El Paso and Laredo to Mexico 
City. It is true that these railroad stocks were the 
playthings of American speculators; and that such 
railroads as Mexico possesses have come into a 
bastard existence as a result of the cupidity and 
lawlessness of American promoters and stock 
gamblers, but this indicates the limit of America's 
service to Mexico in this respect* * * * 

"These much-lauded railroads and govern- 
ment enterprises cost the nation unnumbered 
millions procured by the most extortionate tax- 
ation. Not a dollar of foreign capital was used 
in financing them. They were wrought out by the 
toil of the common people and financed by the 
money of the common people. Even so, for every 
million dollars expended in actual construction, at 
least three million dollars was wasted in bribery 
and embezzlement/' 

That part of the above quotation which says: 
"They were built solely for the sake of the subsidy, 
in such fashion as to be useless for transportation : 



MEXICO UNDER CARRANZA 115 

e.g. the lines from El Paso and Laredo to Mexico 
City," refers to the Mexican Central Railroad 
which was built under a subsidy of Ji 5,311 per 
mile granted by the law appearing as Appendix I. 
If, as stated in the foregoing quotation, "for every 
million dollars expended in actual construction, 
at least three million dollars was wasted in bribery 
and embezzlement," then the portion of the sub- 
sidy granted for the Mexican Central Railroad 
actually applied to its construction was ^3,828 
per mile. A little analysis will show how much 
credence this statement deserves. 

If the line was laid with 75-pound steel rails, 1 32 
tons per mile would have been required which at 
$28 a ton, the standard price for years, would have 
amounted to $3,696, f . o. b. the mills at Pittsburgh 
or Chicago. This would leave a balance of $132 
to pay for such essentials as angle bars, bolts, 
spikes, and ties, not to mention such details as 
freight charges for all material for long distances, 
grading, track-laying, and equipping the line. It 
does seem doubtful that so much could be done 
for $132 a mile, even in Mexico. 

As a matter of fact, the Mexican Central runs 
for several hundred miles through a desert in which 
construction was exceptionally expensive because, 
inot merely all material, but food for the men, 
forage for the animals, and even drinking water for 
both had to be transported long distances at great 



ii6 MEXICO UNDER CARRANZA 

expense. The desert terrain between the Rocky 
Mountains and the Sierras, through which the Cen- 
tral Pacific was constructed is similar to that 
through which the Mexican Central was built. A 
reference to Appendix 1 1 will show that in addition 
to a subsidy of 12,800 acres of land per mile a cost 
of ^64,000 per mile was provided for, one-half be- 
ing loaned by the Government on a second mort- 
gage, the other half to be raised by the company 
on its first mortgage bonds. While the cost of 
constructing the Central Pacific was excessive, 
beyond question, the excess could hardly have been 
near 50 per cent, of the total cost. Yet we are 
asked by these champions of the Carranza revolu- 
tion to believe that the "American speculators" 
who constructed the Mexican Central Railroad, 
accomplished that expensive work for a cost of 
$3,828 per mile, and that they did a great wrong 
to Mexico by accepting the government subsidy 
of $15,31 1 per mile, although it carried with it the 
obligation to transport mails free of charge for 
ninety-nine years and the provision that at the 
end of that period the road should become the 
property of the government free of all liens or 
encumbrances without the payment of additional 
compensation. 

To say that the statement above quoted, that 
"not a dollar of foreign capital was used in financ- 
ing'' these subsidized railroads is false, would 



MEXICO UNDER CARRANZA 117 

hardly express the reckless disregard for truth 
which characterizes the writers of the book referred 
to as well as every other Carrancista propagandist 
who has endeavoured to poison the minds of the 
American people with their outgivings. Further- 
more, the Mexican subsidized railroads, after their 
construction, were managed with such honesty 
that, some years before the end of the Diaz ad- 
ministration, it became evident that it would be a 
good investment for the Mexican Government to 
purchase the controlling interest in the stock of 
the Mexican Central Railroad, which the writer 
quoted says **was built solely for the sake of the 
subsidy and in such fashion as to be useless for 
transportation." This purchase was made by 
the Diaz government and its wisdom as a business 
venture is shown by the fact that when Diaz went 
out of power the net earnings of the Mexican 
Central Railroad were sufficient to pay interest 
on all of its indebtedness and to pay an annual 
dividend of 5 per cent, upon its preferred stock. 
The road never found it necessary to go through 
a receivership, nor was its operation ever crippled 
by financial reverses. Compare this with the 
record made by the companies constructing the 
Union and Central Pacific lines. 

Notwithstanding the enormous land and bond 
subsidies granted the Union Pacific Railroad, its 
promoters were so greedy that they attempted 



ii8 MEXICO UNDER CARRANZA 

to secure additional advantages through national 
legislation. This attempt resulted in what has 
come to be known as the Credit Mobilier scandal. 
An investigation by Congress disclosed a shameful 
scandal involving the bribing of a number of its 
members. The inquiry culminated in a report 
recommending the impeachment of two Congress- 
men. In addition to this, so improvidently, reck- 
lessly, and dishonestly were the finances of the 
Union Pacific managed that it passed through two 
receiverships before it finally reached a position 
of stable financial organization. 

While the Central Pacific was never permitted 
by its promoters to reach a condition of bank- 
ruptcy, it is a well-known fact that the four men 
who promoted it organized the "Contract and 
Finance Company,'' which acted as an inter- 
mediary between the railroad company and the 
Government, doing the construction work, and 
collecting the cash subsidy. When the road was 
finished and put into operation, it was found that 
the organizers of this construction company, who 
were men of very moderate means when they 
undertook the enterprise, had all become million- 
aires. This fact, together with the scandals which 
were unearthed by government investigation of 
the Union Pacific, suggested similar investigation 
of the Central Pacific construction. When this 
investigation took place and it became necessary 



MEXICO UNDER GARRANZA 119 

to examine the books of the ** Contract and Finance 
Company" in order to ascertain the actual cost of 
the construction work upon which the government 
subsidies had been drawn it was found that they 
had all been destroyed. 

The fact is that there can be no comparison 
between the care shown for the interests of the 
Mexican Government in the handling of aid to 
railroad construction and the utter lack of care 
exhibited by our own Government under similar 
circumstances. 

In order to justify their dishonest invasion of 
the rights of foreigners who made investments in 
Mexico previous to and during the Diaz period, 
the Carrancistas have assumed the attitude that 
foreigners who financed the construction of rail- 
roads, either by buying the bonds of the nation 
issued to secure the cash subsidies granted or by 
supplying the additional cost committed a great 
wrong against their country. Certainly no one 
will undertake to argue that the railroads are not a 
valuable economic asset to the country. Even 
under the wretched and dishonest management 
that they have had at the hands of the Carrancista 
government, they have contributed greatly to the 
welfare of Mexico. It is very certain that unless 
these roads had been constructed by foreign capital 
they would not have]been built at all, for the gov- 
ernment was unable to pay the subsidies save by 



I20 MEXICO UNDER CARRANZA 

selling bonds to foreigners, and the subsidies 
granted did not anything like defray the cost of 
constructing and equipping them. 

A country as wealthy as the United States has 
been for many years was not able to finance the 
construction of her railroads. At one time, in 
addition to holding the major portion of the bond 
issues of our principal railroads, foreign investors, 
as shown by Wm. G. Ripley in his work on " Rail- 
road Finance and Organization," in the period 
from 1890 to 1896 held the absolute majority of 
the stock issues in at least five of them; namely, 
Illinois Central, 65 per cent.; Pennsylvania, 52 per 
cent.; Louisville and Nashville, 75 per cent.; New 
York, Ontario and Western, 58 per cent.; Reading, 
52 per cent. At the present time, on account of 
the great prosperity which the industry and thrift 
of the people of our country have produced, the for- 
eign holdings of the stocks and bonds of American 
railroads have been almost entirely wiped out by the 
purchase of these securities by American investors. 

The difference between this country and Mexico 
under her Latin-Mexican masters in their treat- 
ment of foreign investors is well illustrated in the 
matter of investments in railroads in the two coun- 
tries. The Americans welcomed foreign capital 
in the development of great business enterprises 
and depended upon their own industry and thrift 
eventually to acquire the properties by purchasing 



MEXICO UNDER CARRANZA 121 

the securities. To-day almost every dollar of for- 
eign capital that was invested in our railroads has 
been returned and the bonds and stocks which 
represent this capital are owned by our people. As 
a result, we were able to finance the billions of 
expenditure for the war by floating national bonds 
at a lower rate of interest than any other country 
involved was able to secure. 

The controlling elements in Mexico have found 
what they conceive to be a much easier method 
of balancing their account with foreign investors 
by confiscating the railroads and refusing to pay 
a dollar upon the principal or interest of the 
securities issued for their construction. The 
result is that to-day Mexico's credit is so poor that 
although she has been desperately endeavouring 
to raise money in the markets of the world for the 
last three years she has been unable to secure one 
cent from foreign investors to meet the needs of her 
government. Do not these contrasting conditions 
suggest to those of our own citizens, among whom 
are some of our government officials, who have been 
encouraging, or at least palliating and excusing, 
the actions of the Carranza government that they 
are really doing a deadly injury to that country? 

FOREIGN INVESTMENTS IN MEXICAN MINES 

The supporters of the present order, or more 
correctly disorder, now existing in Mexico, in their 



122 MEXICO UNDER CARRANZA 

efforts to win the sympathy of the world, dwell 
with much insistence upon the allegation that for- 
eigners, particularly Americans, have exploited, 
to their benefit and to the injury of the country, 
its mineral resources, more especially gold, silver, 
and copper. 

While it is true that considerable foreign capital, 
mostly American, during the past seventy-five 
years and particularly during the Diaz regime 
when law and order reigned, was invested in mining, 
history shows that the enterprises carried on by 
foreigners really resulted in taking very little from 
the mineral resources of the country that was 
available and valuable to its inhabitants. 

Mexico, when conquered by the Spaniards, was 
enormously rich in gold and silver, and for the first 
three hundred years of Spanish control it con- 
tributed immense amounts of those metals to 
Spain. During this time, the Mexicans became 
excellent prospectors, and were so successful in dis- 
covering the rich deposits of gold and silver that 
during the last hundred years few new deposits 
have been found that were sufficiently rich to pay 
for working by the primitive methods employed 
by the natives. Furthermore, during the period 
when foreigners became interested in Mexican 
mining, it was impossible for Diaz, or any other 
head of the government, to grant any special 
privileges, or rights, to favoured beneficiaries, for 



MEXICO UNDER CARRANZA 123 

the reason that a very carefully thought-out and 
excellent code of mining laws prescribed, as da 
those of the United States, the methods by which 
mineral deposits might be secured and worked. A 
study of the history of precious-metal mining in 
Mexico during the past three quarters of a century 
will show that the principal enterprises conducted 
by foreigners were of three kinds and usually 
involved securing the mines from private owners. 

First: the reopening of mines upon which work 
had ceased because the Mexican miners had carried 
the workings down to a depth at which it became 
impossible with their primitive equipment to con- 
trol the water, and they had been driven out. The 
foreigners, by applying modern high-powered 
pumps, were enabled to unwater these mines 
and to follow the deposits to greater depths than 
could ever have been reached by the Mexicans. 

Second: the handling of large deposits of low- 
grade ores which by the primitive methods of the 
Mexicans could never have been treated with pro- 
fit, but which, by the application of modern im- 
provements, permitting large quantities of ore to 
be handled cheaply, enabled the foreigner to make 
a profit. 

Third: in re-working great dumps of material 
that had once been worked by Mexican miners 
whose primitive methods failed to extract all the 
values. From these old dumps the foreigner with 



124 MEXICO UNDER CARRANZA 

his modern methods and machinery was able to 
extract a profit. 

During the first three hundred years following 
the conquest of Mexico, very much the larger part 
of the richest deposits of gold and silver had been 
discovered and exhausted to the extent that the 
Spanish methods of mining permitted. When 
the revolution against Spain began, mining was 
nothing like as important as it had been; and, of 
course, the disturbed conditions during the eleven- 
year contest for freedom further reduced that 
industry. Little was done to revive it until some- 
time after 1830 when, encouraged by the hope that 
the country would have a government of some 
stabiHty, the English were first among foreigners 
to begin taking an active part in mining. A brief 
resume of the development of the principal silver- 
and gold-mining centres in Mexico follows. 

SILVER MINES 

Pachuca, State of Hidalgo. This camp was dis- 
covered by the Spaniards and operated by them 
for many years. In this operation, most of the 
deposit available under Spanish methods of mining 
was exhausted and that fact, together with the 
unsettled conditions produced by the revolution 
beginning in 18 10, resulted in a suspension of min- 
ing activity in this centre. About 1830 English 
capital became interested in these mines and by 



MEXICO UNDER CARRANZA 125 

installing steam-driven Cornish pumps, the new 
owners were able to operate them with considera- 
ble success until work was greatly curtailed in 
1893 by the drop in the price of silver. Later, 
American capital joined with British in working 
these mines and the American engineers, by in- 
troducing the cyanide process of treating the ores, 
and cheap power for operating the pumps and 
mining machinery from hydroelectric develop- 
ments in the vicinity, again brought prosperity 
to this section, so that shortly before the revolu- 
tion of 1910, Pachuca production of pure metallic 
silver was about 1.5 tons per day, making it the 
leading producer of silver in Mexico and one of the 
most important in the world. But this result was 
achieved with low-grade ores which could never 
have been mined or reduced at a profit by Mexican 
methods. 

Guanajuato, State of Guanajuato. The history 
of this section corresponds closely to that of 
Pachuca, although the ores are of a somewhat 
lower grade. After work under Mexican methods 
of mining had been suspended for a period, Ameri- 
cans undertook to apply modern processes of min- 
ing and ore-reduction and, in doing so, invested 
large sums. They applied cheap electric power, 
supplied by the Central Mexico Light and Power 
Company owned by capitalists of Colorado 
Springs, Colorado. Much of the ore treated came 



126 MEXICO UNDER CARRANZA 

from the old dumps in which it had been left owing 
to the ineificient methods of the Mexicans, and 
much other ore was obtained from the workings 
where it had been permitted to remain as being 
of a grade too low to be treated by the old methods. 

At one time there were employed in this camp 
about 12,000 Mexican miners and mill men. Some 
of the money paid in wages to these men reached 
the farmers in the vicinity who raised crops to feed 
the mining population, and produced a condition 
of great local agricultural prosperity. This work 
was suspended when our Government ordered all 
Americans to leave Mexico and return to the 
United States, and these thousands of Mexican 
labourers who were making a good living and the 
Mexican farmers, who were furnishing the food for 
the labourers, have been the greatest sufferers. 

Sierra Mojada, State of Coahuila. This im- 
portant producer of lead silver ores is located in a 
waterless desert and, contrary to the general rule, 
was not discovered by the Spaniards. Work upon 
it was begun in 1880 by a number of Mexican 
miners and mining companies. The work pro- 
ceeded with indifferent results due to inefficient 
smelting methods and lack of transportation until 
1890 when American capital built a railroad eighty- 
five miles in length connecting the camp with the 
main line of the Mexican Central Railway, thus 
affording an outlet for the ores which, because of 



MEXICO UNDER CARRANZA 127 

their character, had to be treated in modern smelt- 
ing furnaces in order to recover the silver they 
contained. At first the ores were shipped to 
Argentine, Kansas, later to El Paso, Texas, and 
still later to smelters in San Luis Potosi and Aguas 
Calientes, also built and operated by Americans. 
At one time prior to the present revolution, the 
camp of Sierra Mojada produced ore at the rate 
of about 1 ,000 tons per day, from which one ton of 
pure silver v/as extracted. A number of the more 
important mines remained in the hands of their 
original Mexican owners, but were operated under 
the direction of American mining engineers. The 
camp is now entirely inactive due to the precarious 
railway transportation and because of its exposed 
situation inviting bandit raids. In the meantime, 
of course, thousands of Mexican miners, who were 
earning good livings, have been thrown out of em- 
ployment and have really been the greatest suf- 
ferers by this suspension of an important industry 
carried on by American capital and enterprise. 

Santa Eulalia, State of Chihuahua. This im- 
portant camp on the outskirts of the city of 
Chihuahua was discovered and worked by the 
Spaniards at an early date, but the output was 
never very important, because the operators tried 
to smelt the lead silver ores in antiquated furnaces 
made of stone and adobe. Production here did 
not reach full tide until American capital erected 



128 MEXICO UNDER CARRANZA 

large smelting works at Chihuahua which enabled 
the mines to produce profitably a large tonnage of 
relatively low-grade ore. In point of tonnage, 
this camp surpassed Sierra Mojada just before the 
present revolution, but a portion of the output of 
the mines was zinc ore which was shipped to 
Kansas and Oklahoma to be treated by modem, 
methods, aided by cheap fuel. 

Parral, State of Chihuahua. This had been one 
of the old bonanza camps of the Spaniards, who, 
after extracting the high-grade and easily worked 
ores, abandoned it as unprofitable. Activities 
were not resumed until Boston capitalists extended 
a branch of the Mexican Central Railroad to 
Parral and Santa Barbara in 1900. Following this 
there was a period of great activity involving the 
investment of many millions of American capital 
in the development of mining properties and the 
erection of large cyanide and concentrating mills. 
Perhaps half of these yielded favourable results, 
although on the whole the camp has never returned 
more than a small fraction of the money spent by 
the Americans. The camp was not supplied with 
cheap hydroelectric power, although a Canadian 
company had about completed a large plant for 
this purpose just before operations had to be 
suspended on account of the last revolution. One 
of the best-known mines of the camp was the 
Palmilla, owned by a native Mexican named Pedro 



MEXICO UNDER CARRANZA 129 

Alvarado. This mine was unusually rich, and 
for a time Alvarado demonstrated his prosperity 
to the world in rather a spectacular fashion, among 
other things, offering to pay the national debt of 
Mexico, and in constructing a palace at Parral said 
to have cost about half a million dollars. How- 
ever, when his bonanza was worked out and after 
he had spent most of his fortune in search of 
another, he decided to dispose of his mining in- 
terests to a strong Boston company, which built 
a large cyanide plant, installed machinery, and 
invested money and intelligent effort in de- 
veloping the low grade ores which Alvarado had 
left behind as valueless. This camp has remained 
inactive since the last American there was mur- 
dered by so-called revolutionists, although some 
small undertakings were subsequently carried on 
under German auspices. 

The other and less important silver camps of 
Mexico were scattered all over the republic and 
are too numerous to specify in detail, but with 
hardly any exceptions they had been exploited 
by Spaniards or Mexicans at one time or another, 
had then been abandoned as unprofitable and later 
taken up and worked by American or European 
capital, usually expended under the direction of 
American mining engineers or practical miners 
who had no interest other than that of an employee 
earning his livelihood by his ability and education. 



130 MEXICO UNDER CARRANZA 

teaching American methods and the use of Amer- 
ican mining machinery to the native Mexicans, 
thereby increasing their value to their families and 
to their country. 

GOLD MINES 

El Oro, State of Mexico. In recent years, this 
camp has been the most important producer of 
gold in Mexico. It was not worked by the Span- 
iards or Mexicans who overlooked it because the 
ores did not out-crop on the surface. The pro- 
fessional knowledge of mining engineers was 
required to reveal the existence of the ore under the 
surface. The large mines were developed by 
British and French capital, the former being 
expended under the direction of American mining 
engineers, who also built the railway connecting 
the camp with the outside world. Before the 
revolution, this camp gave employment to about 
7,000 men. The ores were treated by the cyanide 
process introduced by Americans. 

San Pedro, State of San Luis Potosi. The vast 
gold deposits of this camp were discovered by the 
Spaniards and since that event mining activity has 
never ceased. Due to the fact that the mines were 
dry and the ores were amenable to smelting in 
primitive adobe furnaces, Spanish methods were 
unusually successful and resulted in the production 
of gold by them to the amount of some hundreds of 



MEXICO UNDER CARRANZA 131 

millions. So valuable and successful were these 
mines that the City of San Luis Potosi, said to have 
been at one time the second largest centre of 
population in Mexico, was built near them. How- 
ever, the exhaustion of the high-grade ores de- 
stroyed the prosperity of the city and it was later 
reduced to the population of a small town. Long 
before 1890, the high-grade ores had been ex- 
hausted and operations were confined to the efforts 
of Mexican miners scratching around in the old 
workings for a few remnants of the former great 
bonanza and in picking over the old dumps and 
waste material rejected during the bonanza days. 
Later, an American company built a modern 
smelter in the city of San Luis Potosi and this 
enabled the Mexican owners to increase their 
operations and handle certain refractory ores to 
which their own methods could not be applied. 
Thus a measure of prosperity returned to the camp 
and was continued until 1903, when it again be- 
came necessary to reduce operations to a negligible 
minimum on account of the low grade of the ores 
and the primitive methods employed in their 
extraction. The American company owning the 
smelter was then induced to take a lease on the 
mining property at San Pedro under a system of 
tribute, or royalty, to the native Mexican owners, 
which is still in effect. Because of large sums 
expended in development work, new shafts. 



132 MEXICO UNDER CARRANZA 

modern machinery, and the construction of a rail- 
way from the smelter to the mines, the output 
gradually increased until in 191 1 it amounted to 
about 700 tons of ore per day and gave employ- 
ment to some 2,000 people. Again hydro- 
electric power, supplied by American capital, 
was a factor in the successful operation of these 
low-grade properties where the product was made 
up exclusively of material rejected by the Span- 
iards and Mexicans, who gutted the best part and 
allowed the rest to cave and become mixed with 
valueless country rock. 

COPPER MINES 

With a few unimportant exceptions, the Span- 
iards were never able to exploit copper ores in 
Mexico successfully; therefore, all of the copper 
mines which have been operated in the recent past 
were developed by foreign capital. In the order 
of their importance, these copper properties are 
located and owned, as follows: 

Cananea, State of Sonora. Owned by American 
capital. 

Boleo, Lower Califarnia. Owned by French 
capital. 

TetiiutlaUy State of Pueblo. Owned by American 
and Italian capital. 

Matehuala, State of San Luis Potosi. Owned by 
American capital. 



MEXICO UNDER CARRANZA 133 

Aguas Calientes, State of Aguas Calientes, 
Owned by American capital. 

The refractory nature of these copper ores, all 
of which are sulphide, required the expenditure of 
large sums for the erection of blast furnaces and 
accessories, and the skill and knowledge possessed 
by American engineers. In the course of develop- 
ing these mines, a great number of unsuccessful 
enterprises were undertaken and a vast amount 
of American effort and money expended without 
the return of any profits. 

In conclusion, it should be noted that cheap 
coal and coke, the use of cheap hydroelectric 
power, together with effective railway transpor- 
tation, all of which were supplied by foreign 
capital, have played a most important part in the 
development during the last thirty years of 
Mexico's great mining industry. 
•V None of the mines owned or operated by for- 
eigners was ever acquired as a concession or grant 
through the favouritism of Diaz, or any other head 
of the Mexican Government. They were, in 
nearly all instances, either purchased or leased 
from Mexican owners and were all acquired under 
the general laws governing the acquisition of 
mineral properties. Very much the larger num- 
ber of them represented a character of mining which 
the Mexicans would not, and could not, have 
pursued because they had not the initiative, the 



134 MEXICO UNDER CARRANZA 

capital, or the engineering knowledge required. 
Whatever wealth was taken out of them by the 
foreigners would never have been accessible to 
the Mexicans. The employment of tens of thou- 
sands of natives and the distribution of much 
money in the form of wages, cost of food stuffs, 
and so forth, represented just so much economic 
value which would never have been acquired 
save for the investment of foreign capital and 
intelligence. 

Any one who may be inclined to doubt the 
possibility of the exhaustion of easily worked 
gold and silver mines in Mexico during the three 
hundred years of Spanish rule will fmd the history 
of gold mining in California enlightening. A 
pamphlet issued by the California State Mining 
Bureau entitled "California Mineral Production 
for 191 5'' contains a very carefully compiled 
table showing the annual gold production of that 
state from the time of the discovery of gold by 
Marshall in 1848, to and including the year 191 5. 
That table shows that the total production for 
the sixty-eight years amounted to the enormous 
value of $1,631, 183,696. The precious metal, it 
will be borne in mind, was first found in large 
placer deposits easily accessible by primitive 
methods of mining. The production in 1848, 
the year of the discovery of gold, amounted to 
^245,301. The annual production increased so 



MEXICO UNDER CARRANZA 135 

rapidly that in 1852, the fifth year after the dis- 
covery, it reached the maximum production of 
J8 1, 294,700. More than half of the total pro- 
duction for the sixty-eight years was made in the 
first twenty years after the discovery of gold. 
The production rapidly decreased after reaching 
Its maximum in 1852, until it had fallen in 1889 
to Ji 1, 2 19, 913. Meanwhile the exhaustion of 
the easily accessible placer deposits had directed 
the attention of miners to the values carried in 
veins and in low-grade placer deposits which could 
only be worked by the expensive mechanical process 
known as dredging. Both vein mining and placer 
dredging require the investment of large sums of 
money and the use of a much higher degree of skill. 
By these methods, the gold production of the state 
has been gradually increased until in 191 5 it 
reached the value of $22,442, 296, but it has never 
approached the maximum realized in the fifth 
year after the discovery of gold. 

When it is recalled that the population of Mexico 
was much more dense than that of California when 
gold was discovered and that for three hundred 
years the people had been engaged in gold and 
silver mining, and the development of that in- 
dustry had been stimulated by the urgent demands 
of the mother country for the payment of tribute 
in these precious metals, it will be seen that the 
probability of the exhaustion of the easily access- 



136 MEXICO UNDER CARRANZA 

ible deposits after three hundred years was very 
great, and that these deposits were so exhausted 
everyone familiar with the history of mining in 
Mexico knows. 

Careful study will show the accusation, so often 
repeated by revolutionists bent upon confiscation, 
that the Mexican people have been robbed of great 
mineral wealth by foreigners, to be a pure inven- 
tion of men desirous of justifying, or palliating, 
the wrongs they have perpetrated. The net 
result up to date of the seven years of revolutionary 
aggression upon the foreign-owned mining in- 
vestments is that some hundreds of thousands of 
Mexican labourers, who were earning wages many 
times greater than they were ever paid by their 
former Latin-Mexican employers, have been 
denied the opportunity to make a living, and have 
been reduced to conditions of misery and suffering 
almost without a parallel even in the history of 
their own turbulent country. 

FOREIGN INVESTMENTS IN MEXICAN LANDS 

Since Mexico became self-governing the agrarian 
question has been most often assigned as the cause 
for the political unrest which has formed so large 
a part of her history. As, previous to the Diaz 
regime with its enforced law and order, few for- 
eigners had acquired land in Mexico, the com- 
plaint against agrarian conditions prior to that 



MEXICO UNDER CARRANZA 137 

,t 

period was that the lands were monopolized by the 
Latin element, which had originally acquired them 
in large holdings after the conquest by Cortes. 
This condition it was asserted, and with much 
truth, had been continued by the successors of the 
original Latin conquerors, thus denying the native 
or peon population an opportunity to acquire an 
interest in the lands. 

It is true that since Mexico became independent 
there has been considerable change in the owner- 
ship of lands. Every revolutionary movement 
has been characterized by the looting of personal 
property and, in the vast majority of cases where 
revolutions have been successful, they have been 
followed by the confiscation of real property, 
owned by the supporters of the losing faction, for 
the benefit of the successful revolutionists. But, 
inasmuch as the confiscated lands were distributed 
to the leaders of the successful party and they were 
almost universally representative of the ruling 
Latin race, the relation of the peon masses to land- 
holding was little affected by these changes in 
ownership. 

It is true that Juarez, after he returned to power 
at the end of the Maximilian epoch, did confiscate 
numbers of large real-estate holdings of the Church 
with some that had been owned by supporters of 
Maximilian, and provided for their division among 
the working class. He did this because, being of 



138 MEXICO UNDER CARRANZA 

pure Indian blood, he was most sympathetic with 
the peon class and because, being an honest man 
and a patriot, he made an honest effort to carry 
out the promises he had made to redress unfavour- 
able agrarian conditions. But his tenure of office, 
and life, ended soon after the beginning of this 
effort to establish conditions more just to the 
masses, and the beneficiaries of his distribution of 
lands being unable to hold them against the mach- 
inations of the governing Latin element, Juarez's 
efforts to readjust agrarian conditions met with the 
same ultimate failure that had followed the few 
other attempts to put the masses of the people into 
possession of some of the lands. 

When Diaz succeeded to power there was no 
very marked change in the ownership of large real- 
estate holdings, but it appears that shortly after 
his accession a number of the revolutionary leaders 
under him became owners of extensive tracts of 
land, and the acquisition of some of these from the 
public domain was probably facilitated by the 
government. However, these changes in owner- 
ship, like others that had been made as the result 
of various triumphant revolutions, did not work 
any improvement in agrarian conditions for the 
peon masses, because the new owners still repre- 
sented the governing Latin element and held the 
land in large tracts. 

During the three hundred years of Spanish con- 



MEXICO UNDER CARRANZA 139 

trol and for some time after its close, the industrial 
interests of the nation were almost entirely agri- 
cultural, pastoral, and mining. Intelligent and 
persistent effort to develop railroad construction, 
manufacturing, and other new business enterprises 
appears to have been first begun under the patriot, 
Juarez, continued under his successor, Tejada, and 
to have been most successful under Diaz, because 
of the long period of law and order which his stern 
methods maintained. Previous to the attraction 
of foreign capital to Mexico her original industries 
had been conducted in the primitive and slip-shod 
manner characteristic, even at the present time, 
of most Latin-Mexicans. As a result there was 
little or no attempt at intensive cultivation of the 
lands, assisted by comprehensive modern methods 
of irrigation, which so large a part of the lands 
require. The same condition existed in the 
pastoral industry, which was little assisted by any 
intelligent effort to increase the value of its product 
by improvement of breeds and supplementing the 
food supply of the natural ranges by the production 
of forage crops. 

Shortly after foreign capital became interested 
in Mexico under Diaz, it was only natural that the 
attention of investors should have been attracted 
to the opportunities for making money by acquir- 
ing lands and applying modern methods to their 
management. It became evident to foreign in- 



140 MEXICO UNDER CARRANZA 

vestprs that Mexico offered unusual opportunities 
for profit in the production of coffee, of cattle by 
improving the grades and producing forage crops 
for feed and, later, by the production of rubber 
which had become, by the invention of the auto 
vehicle, of such great importance in the economic 
life of the world. 

It was also discovered that large tracts of arid 
land could be made wonderfully productive by 
irrigation in a comprehensive way involving the 
investment of large sums of money. Within the 
last thirty years considerable sums have been 
invested in land in the tropic regions which was 
unprodiictive jungle until put by foreign pur- 
chasers to profitable use in the production of coffee 
and rubber. Foreigners have also invested in 
large areas of ranch lands which have in every 
instance been purchased, most often from private 
owners, but, in rare instances, from the govern- 
ment at prices fixed by law. These properties, 
by the application of modern methods of manage- 
ment, were made much more valuable than they 
would ever have been in the possession of their 
original Latin-Mexican owners. 

There have been also established by Amer- 
icans a number of agricultural colonies where the 
lands were divided into small holdings which were 
occupied by American families and were cultivated 
under the methods, and with the improved ma- 



MEXICO UNDER CARRANZA 141 

chinery, used in the United States. This latter 
development should have been of peculiar eco- 
nomic value to Mexico, for, in addition to produc- 
ing a large amount of permanent taxable values 
for the country and giving employment to many 
of the common labourers at wages in excess of any- 
thing they had ever received from native land- 
owners, they furnished a constant example to the 
people of modern methods of land cultivation 
which in time should, and doubtless would, have 
benefited that larger part of the population, en- 
gaged in agriculture. 

A most important development of foreign land- 
ownership has been brought about in the last 
twenty years by the investment of foreign capital, 
principally from the United States, in great rec- 
lamation projects. Comprehensive and costly 
systems of irrigation have made arid lands, pre- 
viously of no economic value, very productive. An 
example of this may be found in the vicinity of 
Torreon, where English and American capital 
utilized the waters of a river in irrigating many 
thousands of acres of land formerly arid that for 
some years past have produced large and valuable 
crops of cotton. I have had some opportunity of 
observing an irrigation enterprise carried out dur- 
ing the past fifteen years by American capital. 
Here by utilizing the waters of a river, nearly a 
hundred thousand acres of arid land, which pre- 



142 MEXICO UNDER CARRANZA. 

viously had never produced a dollar, has been made 
to yield great crops of cotton and forage. This 
one enterprise alone has added millions in value 
to the permanent taxable property of Mexico and 
it is to-day paying taxes to the extent of more than 
a hundred and fifty thousand dollars annually to 
the territorial government in which the land is 
situated. While the taxes are high, the owners 
of this particular investment are somewhat con- 
soled by the fact that the territorial government, 
in marked exception to the general rule, has at its 
head an honest and efficient executive who sees 
to it that these revenues are used in maintaining 
order, constructing highways, maintaining public 
schools, and for other public improvements. 

Since early in the Diaz regime and during its 
continuance, Mexico had a system of land laws 
which provided, as do similar laws in our country, 
for the sale of public land at prices and upon terms 
named therein. After these laws were enacted 
and until they were set aside by the Carranza 
government, it' was never possible for Diaz, or any 
one else, to make a grant or gift of any public lands 
to any citizen or foreigner. A somewhat careful 
investigation has failed to discover a single instance 
in which land in Mexico is held by a citizen of the 
United States by virtue of any public grant or con- 
cession in the nature of a gift. As in the case of 
mining and oil properties, what lands have been 



MEXICO UNDER CARRANZA 143 

acquired in that country by our citizens have been 
bought at a price which represented the full value 
of the land to the owners; and if, under the man- 
agement of the foreign owner, the lands became 
worth more than was paid for them, as they un- 
doubtedly did in most cases, this increased value 
was attributable entirely to the energy and in- 
telligence of the foreign owner. 

This success of the foreign owner, while produc- 
ing some profit to him, has necessarily been of 
great economic value to the people and nation, be- 
cause it has furnished employment for labour at 
rates in every instance greater than the Latin- 
Mexican landowner paid; it has increased by 
millions the taxable property of the country; and 
it has aflForded an object lesson in improved meth- 
ods of management and cultivation which should 
have been of great value to the people of the coun- 
try. Yet, the American investor, who has thus 
added to the prosperity of Mexico, is denounced 
by the element now in power as a robber of the 
people. We shall see in another chapter how these 
foreigners have been deprived of their properties, 
their homes wrecked and ruined, and many of 
them, with their families, murdered. In nothing 
more than in the treatment, by the people now in 
power, of the foreigner who has acquired landed 
interests in Mexico, as contrasted with the treat- 
ment of the foreigner who has acquired land in our 



144 MEXICO UNDER CARRANZA 

own country, is the difference between the policies 
which direct the government of the two countries 
shown. 

The largest privately owned tract of land in the 
United States is the great Maxwell Ranch, in New 
Mexico. This tract, consisting of about 1,470,000 
acres, has for years belonged to Dutch capitalists 
and is devoted principally to stock grazing. But 
nobody has heard any accusations that these for- 
eign investors have inflicted a grievous wrong upon 
our people by becoming owners of this great hold- 
ing. Probably every citizen of New Mexico would 
resent indignantly any suggestion that he desired 
to see his state, or its citizens, become the pos- 
sessors of this land by confiscation. The indus- 
trious Scandinavian peoples, who settled the great 
Northwest, and made their homes upon land 
acquired for a very small part of its actual value 
from the Government, and who are to-day the 
most responsible factors in the prosperity of states 
like Minnesota and Wisconsin, rendered the same 
service to this country that the industrious Amer- 
icans who settled in a number of agricultural 
colonies and made their homes and developed lands 
there rendered to Mexico. 

I have in mind an Italian colony established 
some years ago upon cheap land in a sparsely set- 
tled section of my native state, Arkansas. These 
industrious Italians, on land that before had pro- 



MEXICO UNDER CARRANZA 145 

duced nothing of value, have established beautiful 
farms and vineyards, have built an attractive 
h'ttle town where the fine church and school build- 
ings are the pride of the community, and have 
turned a section of country which was almost un- 
productive into a garden spot, the site of many 
happy homes of an industrious people. So proud 
is the state of what these people have done that 
their achievements are described and illustrated 
in books and pamphlets advertising the resources 
of the state. 

The only reference to similar enterprises which 
have been established by Americans in Mexico 
that will be found in the propagandist literature 
issued by the Carranza party takes the form of 
denunciation of the foreigners who have estab- 
lished these little centres of industry and produc- 
tion as robbers of the Mexican people. The fact 
is that the Latin-Mexican element — ^which at all 
times has been in control of the government and 
which, until foreigners became interested and 
developed valuable properties there under the 
encouragement of the Diaz regime had busied 
themselves in using a hundred revolutionary 
movements to confiscate the property of each 
other — has found that to-day the properties most 
valuable and which, therefore, appeal most to its 
lawless greed, are those built up by the intelligence, 
enterprise and industry of foreigners. This ele- 



146 MEXICO UNDER CARRANZA 

ment is now industriously engaged in confiscating 
these properties, and is endeavouring to justify 
and excuse its acts by accusing the people who 
have built them up of being robbers of their coun- 
try. 

In the United States we welcome the invest- 
ment of the money, the intelligence, and the in- 
dustry of foreigners, and recognize them as assets 
added to the prosperity of the country. Because 
we have pursued that policy we stand to-day with- 
out a peer in national prosperity, wealth, and credit. 
The powers now in control in Mexico, in gratify- 
ing their greedy desire for property created by 
the foreigner, have so destroyed the prosperity 
of their country that thousands of their people 
within the past five years have died of starvation, 
other thousands are on the brink of destruction, 
and the credit of their country is so low that they 
are unable to raise a dollar by public loans. Surely 
such a comparison of results should give pause to 
those who may feel inclined to encourage or to 
tolerate such a spirit as is now dominant in the 
management of governmental affairs in Mexico. 



CHAPTER IV 

Haw tie Carrancisias Have Treated 
the Interests of Foreign Investors 

HAVING learned in the preceding chapter 
that the Carrancistas denounce foreign 
investments as a great wrong against 
their country, and having examined in detail the 
nature and extent of these alleged injuries, it may 
be of interest to ascertain just how these self- 
constituted guardians of the National honour have 
avenged the offenses, and what steps they have 
taken to put the Mexican people in possession of 
their own. It would be logical, if anything re- 
lating to such an extraordinary point of view may 
be so characterized, for the Carrancistas to begin 
their task of redressing grievances by first calling 
to account the alien investments most vitally 
important to the economic welfare of Mexico; and 
that is precisely what they did. 

Cheap fuel is a prime requisite of industry. 
Until a score of years ago Mexico was almost 
entirely dependent upon coal imported from the 
United States at heavy expense for fuel for railroad 
and industrial needs. Then coal of good quality 

147 



148 MEXICO UNDER CARRANZA. 

was discovered in the State of Coahuila. Amer- 
ican, French, English, and Mexican capitalists 
combined to form the Compania Carbonifera 
Agujita e Annexas which developed large mines at 
Agujita and Lampacitos which furnished the rail- 
roads with an abundant supply of much cheaper 
fuel than they had ever had before, and also ren- 
dered possible the building of large smelters, the 
development of iron mines, the establishment of 
iron and steel production, and other important 
industries. 

These alien coal barons were not long permitted 
to continue their crime of enabling many thou- 
sands of Mexicans to earn a far better livelihood 
than they had ever enjoyed before cheap fuel be- 
came known. One of the first acts of Carranza 
after his revolution was anounced in the "Plan 
of Guadalupe," on March 26, 191 3, was to send 
his brother, Jesus Carranza, on May 26 to call 
these coal producers to account. Perhaps the 
story of what followed cannot be better told than 
in the words of an American who was interested 
in the works. Here is what he wrote: 

"Shortly after the assassination of President 
Madero, the mines at Lampacitos were visited by 
General Jestjs Carranza, a brother of the present 
First Chief of Mexico, who, in command of a revolu- 
tionary body, demanded of the manager of the 
mines that he be paid 100,000 pesos, in default of 



MEXICO UNDER CARRANZA 149 

which, he threatened to burn and destroy the plant. 
As the manager had not such a sum in his posses- 
sion, and telegraphic communication with the head- 
quarters of the Company in the City of Mexico was 
interrupted, he was unable to comply with the de- 
mand and General Carranza thereupon proceeded 
to destroy the plant, and in prosecution of such 
intent, dynamited several hundred coke ovens, 
burned most of the houses and buildings, and de- 
stroyed the extensive structures of the company, 
such as the tipple and washer. 

"After completing such work of destruction. 
General Jesus Carranza announced that he in- 
tended to march immediately to Agujita, the other 
plant of the company, situated some fifty miles 
from Lampacitos and that if, by the time he arrived 
there, the money previously demanded by him was 
not paid, he would destroy the plant in Agujita. 

*'Upon arriving at the latter named place, the 
corporation representative being without money 
and being unable to comply with the demand of 
general Carranza, the latter proceeded to destroy 
the plant at Agujita and would have succeeded, 
as in the caseof Lampacitos but for the fact that his 
troops were frightened away before the destruc- 
tion was completed by the rumoured approach of 
Huerta's forces. * * * 

"General Carranza did not destroy a large body 
of coke which was on hand at the time of the dep- 
redations committed by him and his forces and this 
has been regarded by the shareholders of the com- 
pany as one of the sources from which it would be 
able to derive large sums of cash to be immediately 
used in the work of rehabilitating the mines. 



I50 MEXICO UNDER CARRANZA 

**! am just in receipt of a Declaration of For- 
feiture of various mining properties in Coahuila, 
including among others the plant at Agujita above 
described. The R. Muzquiz, whose name is signed 
to the Declaration of Forfeiture, I am informed, is 
the Chief at Coahuila of the civil partisans of First 
Chief Carranza. 

"It is believed that the first object of the Dec- 
laration of Forfeiture is to provide means whereby 
some 30,000 tons of coke on hand, and worth at the 
present time about 2,000,000 pesos in Carranza 
currency, may be disposed of." 

Observe the thoroughness with which this par- 
ticular alien wrong was set right. First, Carranza, 
through his brother, imposes a penalty of 100,000 
pesos upon the coal company for producing the 
fuel which made it possible for many thousands 
of Mexicans to earn a livelihood. Failing to col- 
lect promptly enough, he wrecks the property as 
a warning to other aliens to be quick with the cash. 
The fact that several thousand Mexicans employed 
in and around the mines were left to starve was a 
minor incident. Finally, he declares the title to 
these important mining enterprises forfeited be- 
cause the owners had ceased to operate them after 
Jestjs Carranza did such a good job of wrecking 
them. 

What happened to these coal mines is typical 
of the fate of most industrial enterprises owned by 
Americans in Mexico. To make the story com- 



MEXICO UNDER CARRANZA 151 

plete the fact may be added that after the mines 
had stood idle for some time, because the owners, 
having no assurance of protection, dared not re- 
store them to operation, the properties were 
purchased for a very small part of their value by a 
corporation representing a group of German 
capitalists whose headquarters are in Frankfort- 
on-the-Main. The new owners, under the pro- 
tection which everything German receives from 
Carranza, have reopened these mines, and are now 
producing coal and coke with which to operate 
smelters which they have also acquired in Mexico, 
and which are conducted in competition with 
American-owned smelters whose operations have 
been hampered in every way, and some of which 
have been closed altogether by the exactions of the 
government. 

The foregoing is only one of numerous instances 
in which Germans have been able to secure, at a 
small fraction of their true worth, properties belong- 
ing to citizens of our own country and of our allies, 
France and Great Britain, the value of which had 
been largely destroyed by the exactions of the gov- 
ernment now in power in Mexico. 

The most humiliating result of the Germanophile 
character of the Carranza element has been that it 
has forced American citizens to seek for their 
properties the protection of the German flag. An 
incident of this sort some time ago came to my 



152 . MEXICO UNDER CARRANZA 

attention because it happened to concern residents 
of Los Angeles with whom I am very well ac- 
quainted. These men were developing a large 
rubber and coffee plantation in Mexico. They 
purchased the land, which was unimproved jungle, 
from private owners at a good price. Had the 
plans of the investors been carried out, a great 
property worth millions of dollars, subject to 
taxation, would have been created. They hap- 
pened to have as a manager a German whose 
nationality was attested by a distinctly Teutonic 
name. This man had shown himself to be trust- 
worthy, and, when it became evident that the 
powers in Mexico had great respect for German 
rights and none whatever for those of citizens of 
the United States, the owners of this great property 
placed it in the name of their German manager. 
Some time ago they showed me a letter from this 
manager, in which, after telling that all the goods 
in the store maintained on the property had been 
taken by a company of soldiers from military head- 
quarters near by, he continued: 

*' I am glad to inform you that we were able to 
recover most of the goods taken away from us by 
the government to the capital. The governor, 
hearing they belonged to us, gave order for their 
release and what was left was immediately returned 
to us. When we think of the fact that other people 
have lost their entire stock and shipments, we may 



MEXICO UNDER CARRANZA 153 

consider ourselves belonging to the more favour- 
ably and considerately treated people." 

The other people referred to in the quotation 
were foreigners, not Germans, who had not been 
provident enough to place their properties under the 
aegis of a German name. The existence in a 
neighbouring country of a condition which makes 
it necessary for American citizens to seek pro- 
tection from looting and destruction of their 
property by placing it under the protection of the 
bloody flag of Germany is something which no one 
who endeavours to confine himself to moderate 
language can comment upon. 

Some years ago, the Richardson Construction 
Company, including some of the wealthiest men 
in New York City, was organized for the purpose 
of impounding the waters of the Yaqui River to 
irrigate a body of 800,000 acres of arid land in the 
Yaqui Valley. The company purchased from 
private owners about 400,000 acres in the state 
of Sonora. The remainder of the land to be ir- 
rigated belonged to numerous private holders, 
mostly Mexican citizens. A contract was made 
between the company and the national govern- 
ment, by the terms of which the company, in con- 
sideration of certain payments made and certain 
obligations assumed, was authorized to use the 
waters of the river up to a designated maximum 



154 MEXICO UNDER CARRANZA 

which was estimated as being the amount required 
to irrigate all the land under the project. The 
rates at which this water was to be furnished by the 
company to the owners of land were named in the 
agreement, and were very low — much lower, in 
fact, than the rates for irrigation which prevail in 
Southern California. The land, while unproduc- 
tive in its arid state, is, when irrigated, among 
the most fertile in the world. A date for the com- 
pletion of the work was named, with the provision 
that the term should be extended to cover any 
delays in the work for which the company was not 
responsible. The company by the terms of its 
contract gave security for the carrying out of its 
agreement, the estimated total cost of which was 
about ^14,000,000. The land, under irrigation, 
would have been worth ^100 per acre or more. 
The project fully carried out would have created 
an economic asset, subject to taxation, of a value, 
of nearly or quite ? 100,000,000. The company 
in 1909, entered into an agreement with the state 
government of Sonora, by the terms of which the 
state, appreciating that the land was of little value 
until canals could be built, agreed not to assess its 
holdings higher than 4 pesos a hectare for the term 
of ten years. 

From 19 1 2 until the present time, conditions in 
the Yaqui Valley have been so uncertain and the 
raids of the Yaqui Indians have been so unre- 



MEXICO UNDER CARRANZA 155 

strained that the company has been unable to 
begin the construction of its large dams. Pending 
this work, however, the company has constructed 
a wing dam and has built about 400 miles of canals 
which provide irrigation for 30,000 acres of land, 
about one half of which belongs to Mexican citi- 
zens. The company also established an experi- 
mental station for testing the value of various 
agricultural products, and published, in Spanish 
and English, bulletins giving the result of these 
experiments, which were distributed gratuitously 
to all applicants. In other words, it established 
a fully equipped agricultural experiment station, 
giving to the Mexican people a service which their 
own government had never adequately performed. 
In 191 5 the Carranza government installed 
General Calles as military governor of the state 
of Sonora. Among the first acts of this governor 
was the issuance of a decree. No. 1 7, dated Decem- 
ber 23, 191 5, the apparent object of which was the 
confiscation of property by levying high taxes 
impossible of payment, especially so that the land 
could not be used because of Yaqui Indian depre- 
dations and generally abnormal conditions. When 
the company objected to this taxation and referred 
to its contract with the state government of 
Sonora, dated 1909, it was told that Governor 
Calles had cancelled this contract and that it must 
pay the taxes provided in the decree. 



156 MEXICO UNDER CARRANZA 

Under the political organization of Mexico, the 
territory of the state is divided into a number of 
smaller areas called municipalities; these munici- 
palities have no relation to the density of popula- 
tion in the country, but are extensive areas of coun- 
try land, frequently including 500 square miles or 
more. In addition to the assessment made by the 
state government for purposes of taxation, the 
municipality assessed the land an amount varying 
from 50 per cent, to 75 per cent, of the state as- 
sessment. Under the national law of taxation as 
established by Carranza's government, national 
revenue stamps to the amount of 60 per cent, of 
the amount of the state and municipal taxes must 
be placed upon the receipts for these taxes before 
they are valid. Thus the projectors of this great 
enterprise were met with a demand to pay a state 
tax upon their arid lands assessed at the value 
of productive lands; to pay a municipal tax rang- 
ing from 50 per cent, to 75 per cent, of the state's 
valuation and, in addition, to pay a national tax 
which was 60 per cent, of the sum of the state and 
municipal taxes. 

It may be interesting to note in this connection 
that during the Diaz period the maximum of the 
national stamp tax required to be paid upon state 
taxes was only 20 per cent, while the Carranza 
government has tripled the national tax. This 
assessment was resisted by the company. The 



MEXICO UNDER CARRANZA 157 

government of Sonora then proceeded to sell some 
of the company's improved property, including 
company buildings, to satisfy the state tax, and 
demanded that the company should pay on ac- 
count of this tax one half of all its receipts from 
irrigation, and proceeded to enforce the demand 
by taking money from the safe in the company's 
oifice by force. Later on, these assessments were 
modified. But recently the company has been 
faced by an exaction in another form which shows 
the utter lack of conscience, as well as of all care 
for the economic future of their country, which 
characterizes the Carranza officials. 

The last exaction came in the form of a federal 
decree demanding that the company pay an 
annual tax on the maximum amount of water that 
its contract with the federal government gives 
it the right to divert from the Yaqui River for the 
irrigation of the entire valley, approximately 
800,000 acres of land, payment of this annual tax 
to begin at once, although the contract provides a 
period of approximately twenty years in which to 
complete the irrigation system and subdivide the 
lands that will then, and not until then, be using 
the maximum amount of water provided. Upon 
the representative of the company explaining to the 
Secretary of Fomento that the company could not 
exist under such a burden, especially as it was being 
prevented from completing its work by the failure 



158 MEXICO UNDER CARRANZA 

of the government to protect its workmen from 
raids by the Yaqui Indians and that it stood 
ready at all times to carry out its agreement as 
soon as conditions permitted, it was met with a 
threat that its right to the waters of the Yaqui 
River would be forfeited and that innumerable 
smaller rights to these waters would be issued so 
that each man or small group of men could provide 
their own system of irrigation. 

Of course, it would be utterly impossible to 
irrigate adequately and economically so great an 
area of land except by one system under single 
management, requiring many millions of dollars. 
With this investment made, as originally planned, 
water would be delivered for irrigating this wonder- 
fully rich territory at a very low cost. The Mexi- 
can Government has no money to carry out the 
plan and no prospects of ever securing any. Yet, 
because the company will not submit to a robbery 
which would bankrupt it in a short time, this offi- 
cial of the national government proposes to de- 
stroy an enterprise that would produce hundreds 
of millions of value where nothing exists to-day. 
It would also furnish employment to thousands of 
Mexican labourers and would result in building 
up a great property subject to taxation. 

This is one example of the way many enter- 
prises of like character are being destroyed by the 
Carranza government as a result of a short-sighted 



MEXICO UNDER CARRANZA 159 

and unpatriotic greed which prefers a few dollars 
of loot in the present to a great national benefit in 
the future. 

In all the stories that have been written of the 
robbery and ofttimes murder by revolutionists 
during the last seven years, and especially by the 
revolutionists headed by Carranza, nothing is 
more pitiful than the destruction of a number of 
agricultural colonies established by Americans. 
These colonists represented foreign invasion of the 
most beneficent character. The members of these 
communities were industrious, frugal Americans 
whose efforts were devoted to making land, which 
before had been unproductive, yield the things 
most needed in their adopted country. 

The first result of the success of these colonies 
consisted in increasing the national wealth to a 
large extent by producing property subject to 
taxation. They also gave employment to great 
numbers of the agricultural labouring class of 
Mexicans at wages higher than they had ever 
before known. In addition, they furnished ex- 
amples to the Mexican people of improved methods 
of cultivation which should have made them of 
great economic value to the country. 

There were a number of these American colonies, 
at Garcia, Pacheco, Juarez, Dublan, Diaz, and 
other places in the states of Sonora and Chi- 
huahua. An incomplete list of these colonists. 



i6o MEXICO UNDER CARRANZA 

prepared by U. S. Senator Fall of New Mexico for 
the use of our Secretary of State, enumerates 284 
men, 301 women, and 1,266 children, 1,100 of 
whom had been born in Mexico. All the persons 
on this list not born in Mexico had lived there 
from ten to twenty-eight years. 

A typical example of what these colonists were 
subjected to is shown by the following statement 
of one of them: 

"There must have been 125 houses destroyed at 
Colonia Diaz, which I believe suffered more than 
the others. We had just three hours to get out, 
leaving all the accumulations of years of hard work. 
Oh, it was hard ! I don't want to think of it. We 
left June 2, 191 3, as the bandits destroyed my two- 
story granary and threshing machine. I laid out 
that place twenty-eight years ago and, so to speak, 
grew up with it, so you can imagine how I feel in 
the matter. Several times the Mexicans thrashed 
through the colony, playing havoc with it each time 
until now it is in absolute ruin. Beautiful homes 
all destroyed, farm equipment burned. Every- 
thing those wretches could lay their hands on they 
burned or wrecked. I had 300 head of Polled 
Angus cattle; I saved only 29 head. Of 8g horses 
we had on the ranch, only 8 escaped the hands of 
the bandits. In that section, there were ten stal- 
lions worth $50,000. We did manage to save 3 
or 4 from the bandits. I had 6,000 bushels of 
wheat on my ranch a year ago. It went quickly 
when the revolutionists showed up. In the colony 



MEXICO UNDER CARRANZA i6i 

altogether there must have been 40,000 bushels, 
all of which went. There were about 4,000 people 
in the colonies. There are now only a few families 
left and they are in danger." 



It will be noted that the outrages recited by this 
American citizen, who had devoted twenty-eight 
years of his life to building up a valuable property, 
occurred after the beginning of the Carranza 
revolution, March 26, 191 3. While the outrages 
were not all perpetrated by followers of Carranza, 
most of them were, because his followers were more 
numerous than those of all other revolutionist 
leaders combined. 

The American farmers who composed these 
little centres of agricultural industry and pros- 
perity were in no sense exploiters of Mexico under 
concessions granted by the Diaz government, for 
they had purchased the land upon which they 
built their homes and depended upon their own 
industry, economy, and enterprise for the pros- 
perity which they had achieved, and not upon any 
advantage secured by concessions, or privileges 
of any kind granted by the Mexican Government. 

The destructive effects of the Carranza govern- 
ment on the financial life of the country are shown 
in the treatment of the greatest two banking 
institutions in its capital city; the Banco Nacional, 
representing French capital, and the Bank of Lon- 



i62 MEXICO UNDER CARRANZA 

don and Mexico, representing French and English 
capital. The following description of the way the 
Carranza government dealt with the Banco Na- 
cional was secured from a man who was at one 
time connected with that institution. He says: 

"Since the Carranza government came into 
power the bank has been obliged to accept at par, 
in payment of the loans which it made formerly, 
either in specie or notes of the Banco Nacional, the 
paper money issued by the Carranza government 
which had depreciated in value and was worth only 
five or six cents instead of fifty cents (its face 
value). 

"For having tried timidly to prevent the afflux 
of this depreciated paper in its vaults, the directors 
of the bank were imprisoned and the employees 
were molested. 

"The paper of the other governments (Villa and 
Zapata), which the bank was obliged to receive in 
payment, was declared to be invalid and it had to 
be remitted to the authorities and destroyed. 

"It is thus that more than 30,000,000 pesos in 
current account alone, representing active funds 
of the bank amounting to $15,000,000 were reim- 
bursed by paper which, on an average, was not 
worth more than three or four million dollars. 

"On September 15, 1916, Carranza issued a 
decree annulling the concessions of circulation of 
the banks, fixing a period of sixty days in which to 
increase their specie holdings up to an amount 
equal to the amount of their circulation, estab- 
lishing Sequestration Councils composed of three 



MEXICO UNDER CARRANZA 163 

members nominated by the government and for- 
bidding the banks to transact any business without 
the sanction of the Secretary of Hacienda. 

*'0n September 26, the Council of Sequestration 
named by the government went to the Banco 
Nacional to take possession. As the Directors' 
Council of the bank protested against these violent 
measures, on September 28, the manager and the 
assistant manager of the bank were arrested at 
their homes by order of the military authorities, 
while an armed force presented itself at the bank, 
making all employees and domestics leave and 
then closing the doors. 

"The bank was forced to grant to the govern- 
ment a first loan of 5,000,000 gold pesos. This 
forced loan was followed by others until all specie 
holdings of the bank were successively remitted 
to the government and the bank was thus despoiled 
of thirty to thirty-five million pesos in gold and 
silver which had g^irranteed the circulation before 
the Carranza govei l nent came into power. Since 
then and until the present time the bank, besides 
having been thus dq^ rived of its specie holdings, 
was forbidden to transact any financial business, 
exchange or other; so that it is obliged to main- 
tain a staff of employees and to meet general ex- 
penses which are very high, while it is impossible 
for it to earn a cent. Practically, the Banco Na- 
cional has seen its credit balance reduced to almost 
nothing, as a result of the obligation to-accept paper 
money ; its concession which was granted in 1 884 has 
been annulled; it has been forbidden to.transactany 
financial business, even the most legitimate; in 
principle, its management is in the hands of the 



i64 . MEXICO UNDER CARRANZA 

Gouncil of Sequestration although in fact, thanks 
to the loans which have been granted, the old ad- 
ministration has been tolerated; almost all of its 
branches have been closed; finally, it has been 
obliged to loan to the government its entire specie 
holdings, "gold" and silver/' 

The experience of the London and Mexico Bank 
was equally disastrous. On July 3, 19 17, the 
Board of Directors of that Bank published its 
annual report in El Universal, the leading daily 
paper of the City of Mexico, in which it said: 

"It was then reported that of the amount of 
more than nineteen million pesos in gold and silver 
in bars and coin which has been in the bank's 
vaults, there had been slowly taken away from 
January 18, 191 7, until the present time, the sum 
of more than seventeen million pesos; there re- 
maining in the vaults, according to information 
received by the Board of Directors, only about two 
million pesos. In the report it was stated that the 
Board of Receivers (a board appointed by and 
representing the Carranza government), ordered 
that the cash department and the safes should 
always remain open, which measure obliged the 
Board of Directors to put a corps of employees on 
guard in this department, day and night, to avoid 
responsibility for abstraction of funds from the 
vaults falling on those not responsible. 

"The Board stated categorically that of the 
$19, 611,141 in specie which were in the vaults of 
the bank, hardly $2,000,000 remain, as the Board 



MEXICO UNDER CARRANZA 165 

of Receivers had disposed of the difference, and 
that the said Board of Receivers has sold at the 
lowest prices securities considered first class by 
the bank. 

"That on February 15, 1917, the Department 
of Finance refused to recognize the bank's Board 
of Directors, refusing to take up any matter 
connected with the institution with them and 
ordered that the Board of Receivers liquidate 
the bank. 

" Mention was made of a communication from 
the Department of Finance in October last year, 
asking for delivery to the mint of the bars of 
metal which the bank had in vault and a message 
from the Sub-Secretary of Finance was annexed, 
sent from Queretaro to the manager of the bank, 
categorically stating that the money coined there- 
from would be returned to the bank; and it 
was reported that, notwithstanding this assur- 
ance given by the Sub-Secretary of Finance, com- 
pliance with this written offer has never been 
made. 

" Finally, it was stated that of 820 silver bars, 
taken by the government, worth more than a mil- 
lion pesos, national gold, and eighty gold bars 
worth. 1,840,1 19 pesos, to be coined by the mint, 
they have returned to the bank, in the breach of 
the offer made from Queretero by the Sub-Sec- 
retary of Finance, only 299,675 pesos for the silver 
bars and 200,000 pesos for the gold bars, causing 
the bank a deficit of 2,697,387 pesos/' 

The foregoing instances of the robbery of for- 
eigners by the government now in power might 



i66 MEXICO UNDER CARRANZA 

be multiplied until they would fill all the pages of 
this book without exhausting the list. They are 
given as being merely illustrative of the character 
of the Carrancistas. The list of what they have 
wrecked and ruined might be extended to include 
mines, smelters, public-service corporations, rail- 
roads, and in fact every kind of financial and in- 
dustrial enterprise which contributes to the well- 
being of a country. 

The spirit of looting and dishonesty which rules 
the present government appears to have been very 
frankly indicated in a series of articles published 
last year by Luis Cabrera, at one time Secretary 
of Finance in the Carranza cabinet and one of the 
most prominent leaders in the Carranza revolu- 
tionary party. It appears that Mr. Cabrera had 
been accused by some of his enemies of profiting 
by his control of the national finances. In re- 
sponse to this accusation, he published three 
articles in El Universal, in the Cit^ of Mexico, in 
which, while admitting that large amounts of 
property and sums of money had come into pos- 
session of the military officials as a result of rob- 
bery and confiscation, he denies that this money 
had found its way into the national or state 
treasuries. In his explanation Secretary Cabrera 
shows how this was done, as follows (we quote 
verbatim from El Universal; the italics are 
ours) : 



MEXICO UNDER CARRANZA 167 

" By disposing of articles other than money, such 
as furniture, automobiles, or real estate, for per- 
sonal use or for profit. 

"During the constitutionalists' revolution, the 
case has been repeated, with unfortunate fre- 
quency, under the pretext of confiscating 'inter- 
vened' properties, and great quantities of private 
property have been seized in the beginning for the 
nation, hut the confiscators have used them for per- 
sonal profit or sold them for money. It is unneces- 
sary to bring proofs of this, for unfortunately, 
almost all of the confiscation of the enemies' proper- 
ties, with honourable exceptions, have heen made with 
the deliberate intention of converting the goods for 
private use. This goes from the mere 'loan* of a 
horse or saddle, from the requisition of grain and 
fodder which are not used for the troops, to the oc- 
cupation of houses, property, and ranches which 
have been confiscated and were cultivated and exploited 
directly for the benefit of the confiscator/* 

Following is a list of some of the important 
properties belonging to foreigners of which the 
Carranza government has taken possession and is 
using without compensation to the owners: 

National Railways of Mexico: representing Brit- 
ish, American and French capital; 

Mexican Railway, Vera Cruz-Mexico City; British 
capital ; 

Wells-Fargo Express Co.; American capital; 

Vera Cruz to the Isthmus Railway; American and 
British capital; 



168 MEXICO UNDER CARRANZA 

Ititer-Oceanic Railway; British capital; 

Mexico Telephone and Telegraph Co.; American 
capital; 

Street Railway of Mexico City; Canadian and 
American capital; 

Railways of Yucatan; British capital; 

Mexican Navigation Co.; American capital; Ships 
under Mexican flag; 

The London and Mexico Bank; French and Brit- 
ish capital; 

The Banco Nacional; French capital. 



The railways have been almost entirely wrecked; 
the capital of the banks has been used for the pur- 
poses of the Carranza government and not one 
cent has been paid, or any effort made to pay one 
cent, to the owners of these properties although 
they have, for years, had neither use of the prop- 
erties nor income therefrom. 

Thus, we see that Mexico is in the grasp of men 
who have sacrificed, and are continuing to sacrifice, 
the welfare of the country for the opportunity to 
secure by looting the immediate dollar. It is 
nothing to these men that a great coal company, 
producing a vital necessity of the industrial and 
economic life of Mexico should have been wrecked 
because they were disappointed in not having 
been able to rob the management of that company 
of 100,000 pesos. It is nothing to them that a 
great irrigation enterprise, that would have created 



MEXICO UNDER CARRANZA 169 

$100,000,000 of value, given employment to thou- 
sands of people, produced a great taxable asset to 
the country, and yielded immense annual produc- 
tion of foodstuffs and cotton worth millions of dol- 
lars, should be wrecked and ruined. All this they 
are willing to sacrifice in order to secure a few dol- 
lars of present loot. It is nothing that the great 
financial institutions of the country, which fur- 
nished the capital that is the life blood of business, 
should be wrecked and ruined provided they can 
secure some present money which almost all goes 
to the army for the purpose of maintaining the 
heads of that organization in a life of vicious in- 
dulgence in the capital city. 

It is this spirit now controlling the government 
which has destroyed the industry of Mexico and 
deprived hundreds of thousands of its people of 
the chance to make a living; has caused thousands 
of them to starve to death; has reduced the com- 
pensation of its labourers and school teachers 
until their incomes will barely sustain life, or has 
deprived them of employment altogether and has 
made the country the social and economic wreck 
that it stands to-day. 

No account of the treatment of foreigners by 
the Carrancistas would be complete without a 
reference to the number of American citizens who 
have lost their lives at the hands of the revolu- 
tionists. 



lyo MEXICO UNDER CARRANZA 

A'list of 285 American citizens, with their names 
and addresses, who were killed by Mexican revolu- 
tionists between December, 19 10, and September, 
19 16, was carefully compiled by private parties 
for the information of our Government. This 
list, which is given in full in Appendix III, did not 
pretend to be complete, for it did not include the 
two officers and thirteen men killed by the fol- 
lowers of Carranza at Carrizal, nor many other 
Americans known to have been killed but whom 
it has not been possible to identify. 

The most disquieting feature of this shameful 
series of crimes is that it has continued uninter- 
rupted and unrebuked to the present moment. 
The New York Times of October 20, 19 18, con- 
tained a list of sixty-one outrages including ten mur- 
ders and two kidnappings, the victims of which were 
held for ransom, not for all of Mexico, be it re- 
membered, but for the oil regions alone, in a period 
of six months and eight days ending July 31, 19 18, 
an average of an outrage every three days. This 
list is reproduced in Appendix IV. It will be 
noted that not all the crimes were committed by 
banditti but that some were perpetrated by Car- 
ranza soldiers in uniform. In one instance Car- 
ranza soldiers overtook banditti who had just 
robbed a launch of a considerable sum and robbed 
the robbers. In still another instance the banditti 
compelled their victim to sign a certificate to 



MEXICO UNDER CARRANZA 171 

satisfy their commander that they had stolen 
everything there was to take. The oil fields offer 
a happy hunting ground for robbers in uniform or 
out of it, because money is more plentiful there 
than elsewhere, as the petroleum industry is about 
the only one left in anything approximating full 
operation. 
V Probably no better statement of outrages upon 
the persons of Americans could be made than that 
contained in the letter of our Secretary of State 
of June 20, 19 16, addressed to the "Secretary of 
Foreign Relations of the de facto government of 
Mexico." This letter was provoked by a most 
impudent communication addressed by C. Aguilar, 
Secretary of Foreign Relations of the Carranza 
regime, which the United States had recognized 
as the de facto government of Mexico, to Sec- 
retary of State Lansing, in which the writer ac- 
cused our Government of bad faith in sending 
troops into Mexico to apprehend bandits who had 
invaded our country and murdered our citizens. 
The letter of Secretary Lansing in reply is probably 
one of the most remarkable documents ever 
framed by an officer of a responsible government 
in the showing that it made of tame submission 
to outrages upon its citizens. The only consola- 
tion for an American citizen in the whole dismal 
recital is found in the evident burning indignation 
of the Secretary of State at the existence of condi- 



172 MEXICO UNDER CARRANZA 

tions which made such a letter possible. In his 
letter the Secretary says (Italics are the author's): 



" For three years the Mexican Republic has been 
torn with civil strife; the lives of Americans and 
other aliens have been sacrificed; vast properties 
developed by American capital and enterprise have 
been destroyed or rendered unproductive; bandits 
have been permitted to roam at will through the 
territory contiguous to the United States and to 
seize, without punishment or without effective 
attempt at punishment, the property of Amer- 
icans, while the lives of citizens of the United 
States, who ventured to remain in Mexican ter- 
ritory, or to return to protect their interests, have 
been taken, in some cases barbarously taken, and 
the murderers have neither been apprehended nor 
brought to justice. 

*' It would be difficult to find in the annals of the 
history of Mexico conditions more deplorable than 
those that have existed there during these recent 
years of civil war. 

"It would be tedious to recount instance after 
instance, outrage after outrage, atrocity after 
atrocity, to illustrate the true nature and extent of 
the widespread conditions of lawlessness and 
violence which have prevailed. During the past 
nine months in particular, the frontier of the United 
States along lower Rio Grande has been thrown 
into a state of constant apprehension and turmoil 
because of frequent and sudden incursions into 
American territory and depredations and murders 
on American soil by Mexican bandits, who have 



MEXICO UNDER GARRANZA 173 

taken the lives and destroyed the property of Amer- 
ican citizens, sometimes carrying American citizens 
across the international boundary with the booty 
seized. 



"American garrisons have been attacked at 
night, American soldiers killed and their equip- 
ment and horses stolen. American ranches have 
been raided, property stolen and destroyed, and 
American trains wrecked and plundered. The 
attacks on Brownsville, Red House Ferry, Pro- 
greso Post Oifice, and Las Peladas, all occurring 
during September last, are typical. In these attacks 
on American territory, Carrancista adherents, and 
even Carrancista soldiers, took part in the looting, 
burning, and killing. Not only were these murders 
characterized by ruthless brutality, but uncivilized 
acts of mutilation were perpetrated. Representa- 
tions were made to General Carranza, and he was 
emphatically requested to stop reprehensive acts 
in a section which he has long claimed to be under 
the complete dominion of his authority. Notwith- 
standing these representations and the promise of 
General Nafaratte to prevent attacks along the 
international boundary, in the following month of 
October a passenger train was wrecked by ban- 
dits, and several persons killed, seven miles north 
of Brownsville, and an attack was made upon 
United States troops at the same place several days 
later. 

"Since these attacks, leaders of the bandits, 
well known both to Mexican civil and military 
authorities, as well as to American officers, have 



174 MEXICO UNDER CARRANZA 

been enjoying with impunity the liberty of the 
towns of northern Mexico. 

*'Sofar has the indifference of the de facto govern^ 
ment to these atrocities gone that some of these leaders, 
as I am advised, have received not only the protection 
of that government, hut encouragement and aid as well. 
Depredations upon American persons and prop- 
erty within Mexican jurisdiction have been still 
more numerous. 

" This Government has repeatedly requested, in 
the strongest terms, that the de facto government 
safeguard the lives and homes of American citizens 
and furnish the protection, which international 
obligations impose, to American interests in the 
northern states of Tamaulipas, Nuevo Leon, 
Coahuila, Chihuahua, and Sonora, and also in the 
states to the south. 

''For example, on January 3d, troops were 
requested to punish the band of outlaws which 
looted the Cusi mining property, eighty miles west 
of Chihuahua, but no effective results came of this 
request. 

"During the following week the bandit, Villa, 
with his band of about 200 men, was operating 
without opposition between Rubio and Santa 
Ysabel, a fact well known to Carrancista authori- 
ties. Meanwhile a party of unfortunate Amer- 
icans started by train from Chihuahua to visit the 
Cusi mines, after having received assurances from 
the Carrancista authorities in the state of Chihuahua 
that the country was safe and that a guard on the train 
was not necessary. The Americans held passports 
of safe conduct issued hy the authorities of the de 
facto government. On January loth, the train was 



MEXICO UNDER CARRANZA 175 

stopped by Villa bandits and eighteen of the Amer- 
ican party were stripped of their clothing and shot 
in cold blood in what is now known as the Santa 
Ysabel Massacre. * * * Within a month after 
this barbarous slaughter of inoffensive Americans, 
it was notorious that Villa was operating within 
twenty miles of Cusihuiriachic and publicly 
stated that his purpose was to destroy American 
lives and property. Despite repeated and insis- 
tent demands that military protection should be 
furnished to Americans, Villa openly carried on 
his operations, constantly approaching closer and 
closer to the border. He was not intercepted nor 
were his movements impeded by troops of the de 
facto government and no effectual attempt was 
made to frustrate his hostile designs against Ameri- 
cans. In fact, as I am informed, while Villa and 
his hand were slowly moving toward the American 
frontier in the neighbourhood of Columbus ^ N. M., 
not a single Mexican soldier was seen in this vicinity, 
yet the Mexican authorities were fully cogni:(ant of 
his movements and on March 6, as General Gavira 
publicly announced, he advised the military author- 
ities of the outlaws' approach to the border so that 
they might be prepared to prevent him from crossing 
the boundary. 

" Villa's unhindered activities culminated in the 
unprovoked and cold-blooded attack upon Amer- 
ican soldiers and citizens in the town of Columbus 
on the night of March 9, the details of which do not 
need repetition here in order to refresh your mem- 
ory with the heinousness of the crime. After 
murdering, burning, and plundering, Villa and his 
bandits, fleeing south, passed within sight of the 



176 MEXICO UNDER CARRANZA 

Carrancista military post at Casas Grandes, and 
no effort was made to stop him by the officers and 
garrison of the de facto government stationed 
there. * * * American forces pursued the law- 
less bandits as far as Parral where the pursuit was 
halted by the hostility of Mexicans presumed to be 
loyal to the de facto government, who arrayed 
themselves on the side of outlawry and became in 
effect the protectors of Villa and his band. * * * 
1 am reluctant to be forced to the conclusion which 
might be drawn from these circumstances that the 
de facto government, in spite of the crimes com- 
mitted and the sinister designs of Villa and his 
followers, did not and do not now intend or desire 
that these outlaws should be captured, destroyed, 
or dispersed by American troops, or at the request 
of this Government, by Mexican troops. * * * 
Candour compels me to add that the unconcealed 
hostility of the subordinate military commanders of 
the de facto government toward the American troops 
engaged in pursuing the Villa bandits and the efforts 
of the de facto government to compel their withdrawal 
from Mexican territory by threats and show of 
military force, instead of by aiding in the capture 
of the outlaws, constitute a menace to the safety 
of American troops and to the peace of the border. 
* * * In view of this increased menace, of 
the inactivity of the Carrania forces, of the lack 
of co-operation in the apprehension of the Villa ban- 
dits and of the known encouragement and aid given to 
bandit leaders, it is unreasonable to expect the 
United States to withdraw its forces from Mexican 
territory or to prevent their entry again when their 
presence is the only check upon further bandit out- 



MEXICO UNDER CARRANZA 177 

rages and the only efficient means of protecting 
American lives and homes, — safeguards which 
General Carranza, though internationally obligated 
to supply, is manifestly unable or unwilling to 
give." 

Surely no further proof should be needed of the 
fact that Carranza and his followers have, from the 
very beginning, been inspired by a spirit of law- 
less aggression in their dealings with Americans 
and the citizens of our allies, England and France, 
which has led them to violate every principle of 
international law which is supposed to govern the 
conduct of a country toward the nationals of other 
countries. 

That the Carranza party has been permitted to 
carry on without restraint its lawless dealings 
with the persons and properties of all foreigners 
in Mexico, except the citizens of Germany, must 
be accepted as one of the results of the great war; 
but, in view of the failure of our own Government, 
during eight years* revolutionary activity in Mexico, 
to furnish any protection worthy of the name to 
the persons and property rights of Americans in 
that country, we probably cannot claim that the 
war has had any effect upon the treatment of 
American citizens there. During the first two 
years of revolution begun by Madero and con- 
tinued by several leaders who challenged his power 
after he had succeeded Diaz, many offences against 



178 MEXICO UNDER CARRANZA 

the. persons and property of Americans in Mexico 
and along the border were committed by various 
revolutionary bands. During this period our 
country was under a republican administration, 
and the officers of that administration adopted the 
course of refusing protection to American citizens 
against offences from armed Mexicans, which ap- 
pears to have been followed by our Government 
continuously since that time. In a speech made 
in the United States Senate on March 9, 19 14, the 
Honorable Albert B. Fall, United States Senator 
from New Mexico, in criticizing the failure of 
President Taft's administration to afford protec- 
tion to Americans against lawless invasion of their 
rights by Mexicans, said in reference to the killing 
of our citizens in El Paso by bullets from the guns 
of Mexican revolutionists: 

"The United States troops patrolled the city, 
the streets, the water front, and the boundary line. 
Telegrams were sent backward and forward, one of 
the officers, at least, demanding that he be allowed 
to go across into Mexico for the purpose of prevent- 
ing the threatened danger to Americans on this 
side, in a city of 50,000 people. But they were not 
allowed to enforce their warning and 18 American 
citizens, including women, were shot down in the 
streets of El Paso. 

" Mr. President, when their friends asked of the 
Government of the United States that it might 
investigate the killing of American citizens on 



MEXICO UNDER CARRANZA 179 

American soil and obtain for their families some 
little measure of relief in the payment of damages 
to those who needed it for their daily subsistence, 
this great Nation in writing refused to consider 
their cases and relegated them to the Mexican 
courts in the Republic of Mexico. 

" Finally this matter was brought to the atten- 
tion of the Congress of the United States by the 
Senator from Arizona (Mr. Smith) and myself, and 
when the Congress of the United States finally 
understood the matter they took it out of the hands 
of the State Department, which had proven itself 
incapable and unworthy in dealing with affairs of 
this kind, and placed it in the hands of the War De- 
partment, who found damages to American citi- 
zens in El Paso for killing and wounding Ameri- 
cans, to the amount of $71,000 which should be 
paid by this Government, which might thereafter 
undertake to enforce its claims upon the govern- 
ment of Mexico. 

"The Senate, Mr. President, I am proud to say, 
made an appropriation a year ago for the payment 
of these claims. Now the people are back here 
begging again at the hands of this Government 
that some little measure of justice to the children 
and widows of American citizens shot down on 
American soil may be provided as for two or three 
years they have been compelled to depend upon 
their own efforts." 



It may not be amiss at this point to recall the 
fact that when the United States recognized the 
Carranza administration as the de jure govern- 



i8o MEXICO UNDER CARRANZA 

meot of Mexico it became legally bound under 
international law to collect all just claims of 
American citizens for damages to property or 
injuries to person from the Mexican Government. 
Failing so to collect, this Nation is morally, though 
not legally, bound to pay the claims itself. We 
recognized this principle of international law some 
forty years ago when twenty-one Chinamen were 
hanged in Los Angeles during an anti-Chinese 
outburst. Although China had no navy and was 
wholly incapable of enforcing any claim we vol- 
untarily paid the bill for damages. We again 
recognized this principle a few years later, when a 
number of Italians were lynched at New Orleans, 
by paying promptly and without protest a bill for 
damages from the Italian Government. Finally 
we have recognized the duty of Government to 
protect its citizens wherever they may be, in more 
than a hundred instances in various places from 
the Chinese coast to Armenia; from Patagonia 
to Japan and on the Barbary coast. When 
armed force was necessary to insure protection 
or exact reparation for injury to its citizens the 
American Government has not hesitated to use 
such force in the past. Indeed, the protection of 
its citizens abroad as well as at home is one of the 
fundamental functions for which governments 
are created. 
So bitterly did the citizens of the border states 



MEXICO UNDER CARRANZA i8i 

resent the failure of President Taft's administra- 
tion to protect the rights of American citizens that 
the National Democratic Convention of 19 12 in- 
cluded in its platform the following plank drafted 
by a delegate from El Paso: 

"The constitutional rights of American citizens 
should protect them on our borders and go with 
them throughout the world, and every American 
citizen residing or having property in any foreign 
country is entitled to and must be given the full 
protection of the United States Government, both 
for himself and his property." 

Now note how the pledge was fulfilled. In a 
speech on the floor of the Senate, March 9, 19 14, 
Hon. Albert B. Fall, Senator from New Mexico, 
related his experience, in seeking protection for 
Americans in Mexico, at the hands of Secretary of 
State Bryan, who figured conspicuously in the 
convention that adopted this pledge, and who was 
appointed to the highest seat in the cabinet by the 
president elected upon the platform containing 
the pledge. Said the Senator: 

" I went to the Secretary of State (Mr. Bryan) 
myself for the purpose of presenting to him a con- 
crete case which occurred in the town of Cananea, 
where an American citizen was threatened with 
deportation by the so-called authorities of that 



i82 MEXICO UNDER CARRANZA 

Mexican state. During that conversation the 
'same subject (character of American citizens in 
Mexico), was brought up to me, and it was stated 
that the Americans who were in Mexico were not 
Americans who were seeking to make homes there 
and help the country, but they were solely repre- 
sentatives of corporations, there for the purpose of 
exploiting the people, obtaining possessions, getting 
hold of dollars, and coming back to this country, 
and that they had no right to demand protection for 
their property**. 



Other responsible officials of this Government 
have since sought to justify their failure to protect 
the persons and property of Americans against law- 
less aggression in Mexico by the astounding alle- 
gation that our citizens had so conducted them- 
selves there that they were unworthy of protection 
by this Government! Under such circumstances 
it is hardly surprising that crimes against the per- 
sons and property of Americans in Mexico, not 
alone by revolutionists, but also by the present 
recognized government, have been continued and 
enormously increased. 

It is beyond belief that England and France 
would have submitted tamely to the outrages per- 
petrated upon their citizens if they had not been 
so fully occupied in fighting the German friends of 
the Carrancistas for the freedom of the world. 
The fact that in this emergency America failed 



MEXICO UNDER CARRANZA 183 

to do anything for the protection of the nationals 
of these two countries furnishes no very strik- 
ing evidence of our inclination and capacity 
to discharge the duty of maintaining orderly 
government in the Americas, which we have 
sometimes accepted as a corollary of the Monroe 
Doctrine. 

Citizens are urged by the Government to help 
extend our foreign commerce. No argument 
should be needed to prove that in order to develop 
commerce with a foreign country our citizens 
must acquire business enterprises there. Every 
successful commercial nation has followed that 
policy. The two peoples that have been most 
successful in developing foreign commerce in the 
last half century are the English and the Ger- 
mans. In the case of both the most prominent 
factor in their success has been the acquisition or 
creation of business enterprises abroad. Ger- 
many's activity in this direction is shown by the 
fact that the alien property custodian has taken 
possession of German investments in the United 
States valued at more than eight hundred million 
dollars. 

The attitude of the American Government, 
as exemplified in its dealing with Mexican 
affairs, is that its citizens perpetrate a great 
wrong against any country with which they 
try to develop commerce unless they expatriate 



i84 MEXICO UNDER CARRANZA 

themselves and make their permanent homes 
there. 

There was an especially good reason why Amer- 
icans who went into Mexico should not give up 
their citizenship. While they were willing to risk 
their persons and the money they invested they 
could not be expected to forget that until Diaz 
established law and order Mexico had witnessed 
the rise and fall of seventy odd heads of govern- 
ment, in almost every instance as the result of a 
violent revolution of which the prominent feature 
was the looting of private property. Doubtless, 
Americans who cast their business fortunes in 
Mexico remembered the uncertainty of govern- 
ment during more than fifty years, and for that 
reason determined to maintain their American 
citizenship to which they might appeal for pro- 
tection in the event that the Latin-Mexican ele- 
ment, which had exhibited its lawless greed so of- 
ten, should attempt to violate their rights. That, 
when the day of need came for them to claim 
the shelter of the Stars and Stripes, its protection 
was denied them, is the saddest, most tragic 
chapter in all the history of our dealings with 
Mexico. 

The Americans who went into Mexico upon the 
invitation of the government and played a great 
part in promoting the country's economic welfare 
are exactly the same sort of Americans who by the 



MEXICO UNDER CARRANZA 185 

tens of thousands have within the past two decades 
emigrated to the wheat lands of Western Canada. 
These men, confident of the sort of government 
that they would be given by the Anglo-Saxon 
race became citizens of Canada and for more than 
four years fought the battles of their adopted 
country on the western front as a part of the 
Canadian troops who have made such glorious 
history. 

Before leaving the subject of the destruction 
by the Carranza government of the property of 
citizens of our allies who for more than four 
years fought Germany, a reference to its effect 
upon the war would not be inappropriate. That 
such effect was achieved and that it was and 
is seriously burdensome to the Allies is easily 
shown. 

The demands of the war have been particularly 
heavy upon copper, lead, rubber, and food, and the 
actions of the Carranza party have had a marked 
influence upon the production of all of those 
articles. It is, of course, impossible to secure at 
the present time any definite comparative figures 
by which the destruction of the industries produc- 
ing those staples in Mexico can be accurately indi- 
cated. In the latter part of 19 16, certain Ameri- 
can mining interests operating in Mexico, sup- 
posed to represent in mass about two thirds of the 
American mining interests in that country, com- 



i86 MEXICO UNDER CARRANZA 

piled for the use of our officials some figures show- 
ing the difference between the production of cer- 
tain metals in the year 19 12, the year before the 
Carranza revolution started, and in the first half 
of the year 19 16. Following is a tabulation of 
these figures: 



Ore. . 

Gold . 
Silver. 
Copper 
Lead • 
Zinc . 



I9I2 FIRST HALF OF 1916 

5,180,059 tons 904,131 tons 

252,843 ounces 39,895 ounces 

31,892,735 ounces 6,200,339 ounces 

74,984 tons 23,156 tons 

70,939 tons 2,928 tons 

46,765 tons 11,183 tons 



It will be noted that the foregoing table shows 
a reduction in the production of two metals of 
prime necessity in war, copper and lead, of about 
38 per cent, in the former and more than 91 per 
cent, in the lead production. If to the foregoing 
figures should be added the reduced production of 
the American mining interests not represented, 
the loss would, of course, be increased by 50 per 
cent. 

With the present development of the auto- 
vehicle, rubber is an article of prime necessity, 
especially in war. The following table prepared 
by the American companies engaged in producing 
rubber from the Guayule shrub in Mexico com- 
pares the production of the years 19 10, which 



MEXICO UNDER CARRANZA 187 

witnessed the beginning of revolutionary activities, 
and 1916: 

Production of Guayule Rubber 
From January, jgio, to December, igi6 

POUNDS 
YEAR PRODUCED 

I9IO 28,488,320 

191 I 24,144,960 

I9I2 20,172,000 

I9I3 6,177,840 

I9I4 1,904,000 

I9»5 5,976,007 

1916 1,070,924 

It will be seen that the production of this neces- 
sity for the military establishments of our country 
and its allies during the war was reduced by more 
than 96 per cent. This, however, does not tell 
the full story of the loss. All rubber imported into 
the United States from Mexico can be brought by 
railroad. All other rubber imported required the 
use of ocean tonnage which was so precious after 
our entrance into the war. As the result of the 
destruction of rubber production in Mexico, many 
millions of pounds, to offset the loss, had to be 
brought in by the use of much maritime tonnage 
which might, of course, have been used for other 
most necessary purposes. 



i88 MEXICO UNDER CARRANZA 

The condition of the Mexican population, as 
indicated in the matter quoted from various 
sources, has resulted in a great reduction of food 
production in that country. This reduction has 
been so great that it was estimated about the 
beginning of 19 18 that the United States would 
have to permit at least a hundred million bushels 
of corn to be shipped into Mexico to avert threat- 
ened starvation. In addition to this the burden 
of the allies who were fighting Germany was in- 
creased by the fact that at least a billion and a 
half dollars of the money of the United States and 
her allies invested in Mexico has had its earning 
power destroyed by confiscations and other law- 
less exactions of the Carranza government. Under 
normal conditions these Mexican investments had 
a very high earning power which could have borne 
a not inconsiderable share of the burdens of war. 
It must have been a matter of distinct gratifica- 
tion to Carranza and his pro-German associates 
that they were able to contribute so much to the 
aid of Germany and the burdens of her opponents. 

But at last some, at least, of the Mexicans have 
awakened to an uncomfortable realization that a 
day of reckoning is at hand. One significant indi- 
cation of this is to be found in an article published 
in A. B.C.yOi Mexico City, December 14, 19 18. 
To make the matter more interesting the article 
has been brought to the attention of the State 



MEXICO UNDER CARRANZA 189 

Department at Washington and of members of 
Congress. A. B. C. is the first independent news- 
paper of the Carranza regime. It came into 
notoriety at a time when one of its most prominent 
contributors, Licentiate Eduardo Pallares, was as- 
saulted in a cowardly manner by a noted Mexican 
military chief, now at large in that city. Its 
editor was also brutally assaulted a few days later; 
and as a result of the action of the military and 
Germanophile Minister of the Interior the paper 
suspended publication. It has recently resumed 
publication, showing the same virility and inde- 
pendence as before. The leading article in the 
first issue after resumption began: "As we said 
yesterday,'' etc., which was the editorial way of 
refusing to recognize its suspension or to recant 
anything it had said. The article referred to of 
December 14, 19 18 said: 

" By a strange coincidence, the triumph of the 
Constitutionalist Revolution in August, 19 14, 
coincided with the beginning of a war in Europe, 
whose consequences and duration none could fore- 
see, but which would certainly contribute toward 
a definitive change in methods of government. 
But peace once more has come to the world, and 
governments are beginning to balance their books 
after the outpouring of men and material that the 
war required. But not alone those nations that 
took part in the struggle are checking up their ac- 
counts after these past four years, but also those 



igo MEXICO UNDER CARRANZA 

that held aloof either through egoism or through 
necessity are making up their hooks, for they fully 
realize that the fruits of victory will be shared by 
all, in the measure of their deserts, and of certain 
special circumstances, and that the keen eye of the 
investigator will know how to weigh the attitude 
adopted by each in the war and to give to each 
what he deserves. 

"As members, then, of a community which must 
shortly he the subject of inquiry of the chanceries of 
the world, our duty is to help our government in its 
tasks and to speak frankly, for the day of reckoning 
is upon us and we must avoid malicious deceptions 
and futile excuses which can only place our country 
in a humihating position. It is preferable to fall 
face forward than to drop on our knees in sup- 
pliant tone. 

"For four years and four months, the Consti- 
tutionalists in Mexico have conducted things in total 
disregard for the interests of all who did not belong 
to the political group in power. Not the most rudi- 
mentary principles of practical politics, nor the 
most elementary rules of diplomacy and courtesy 
stopped their action. Like the tables of proscrip- 
tion which gave such ill-fame to Scylla, there were 
expelled from the country nationals and foreigners 
alike, without regard even for the diplomatic status 
of some of the expelled. When Belgium was 
receiving the kindly consideration of all civilized 
nations for the heroic resistance she offered against 
the violators of her sovereignty, she received a sam- 
ple of the characteristic courtesy which the Constitu- 
tionalists were beginning to show: her Minister was 
forced to leave at the express bidding of the revolu- 



MEXICO UNDER CARRANZA 191 

iionary authorities. Later, the representatives of 
other nations, among them England, Guatemala and 
Spain, also left the country because they were held 
to he enemies oj the revolution, while the representa- 
tive of Brazil was accused of reactionary tendencies 
just at the moment when he was leaving to report 
to the Government of the United States as to his 
conduct of affairs while representing this latter 
nation. Diplomatic amenities were dispensed 
with; all were treated as if Dr. Francia had held the 
portfolio of Foreign Affairs. And if this was the 
fate of representatives accredited to Mexico, what 
was not the lot of the ordinary citizens of these 
countries, whose governments, on account of the state 
of war, could not give the necessary protection to their 
nationals? We do not deny that in certain cases 
the conduct of the above-mentioned diplomatic 
representatives may, at times, have been irregular, 
but, be this as it may, the action of the Constitu- 
tionalist government was, because of its display of 
brute force, both unwise and impolitic. On the 
other hand, it is our opinion that the majority of 
cases of the expulsion of foreigners was justified; 
which was not the case, however, with that of the 
nationals, some of whom were driven out under 
most infamous conditions. 

" It is proper to recall that by virtue of, 'might 
is right' theory, the properties of many foreigners 
were seized, many of them being still administered by 
the government, now ruled by a political constitution 
which the Constitutionalists saw fit to impose upon 
the nation. The protests, covering each and every one 
of these acts, on file in our Department, will have to 
he drawn out of the pigeon-holes into which they have 



192 MEXICO UNDER GARRANZA 

h&en relegated, in order to he considered anew; but 
excuses and pleas will no longer avail, for the hour 
has struck and the decision must he made, fVhat 
answer can he given as to the cancellation of hank 
concessions and the forced loans from the hanks, as to 
the seizure of the tramways and of the Mexican rail- 
roads, as to the indefinite suspension of the public debt 
services, as to failure to meet the railroad coupons, 
etc., etc. ? We frankly do not know; but we foresee 
the full weight of responsibilities, and as Mexicans 
earnestly desire a solution satisfactory to our dig- 
nity and decorum. This doubt, however, assails 
us : Are those who direct our destinies in these days 
able to settle such momentous problems? If the 
group at present all-powerful in administration cir- 
cles continues as it has heretofore, without new 
blood, without expelling from its midst the corrupt 
elements, we can readily give a categorical *N0.' 
" We must set down here — for this is the gravest 
of all our responsibilities — our attitude during the 
war, our much vaunted nationalism which served 
as a ready pretext for several authorities to support 
the Germanophile press, which favoured the election 
of the standard-bearer of the Teutons in Mexico 
as Senator for the Federal District. We must 
think, too, of the whole series of irritating acts of 
unjustified arrogance, of idiotic conduct which only 
the folly of several of our compatriots made pos- 
sible. We must recall the withdrawal of our repre- 
sentative in Cuba as the first step toward carrying 
out a new international doctrine. We think of so 
many and so varied proofs of leaning toward Germany 
which if we were to relate them would make this 
article too long. Our purpose is merely to point 



MEXICO UNDER CARRANZA 193 

out to our authorities the error of their ways, so 
that in the days about to dawn they should not fall 
into the same errors, since it is unfair that the Mex- 
ican nation and people should suffer the conse- 
quences of the mistakes, whims and inefficiency of 
certain, short-visioned authorities. 

"Peace has surprised some of the leaders of the 
Administration who believed thai their star would not 
set so soon, that the struggle would he indefinitely 
prolonged, and that, at last, the might of Germany 
would impose itself upon the world. All these il- 
lusions have disappeared in thin air, and they are 
suddenly brought face to face with the present situa- 
tion. Let them take up new positions, because the 
problems with which they are beset are about to be 
settled, the hour of reckoning has struck, and we must 
be collected in order to appear in a proper role. 
We earnestly hope for this on behalf of Mexico, so 
that there may not befall her, as on other occasions 
guilt which is solely imputable to a group of Mexi- 
cans blinded by pride and ambition." 



CHAPTER V 

Causes of the Evils Which Have Afflicted the 
Mexican People Since Their Existence as a Self" 
Governing Nation Began in 1821 — The Remedy 

NO GOOD purpose would be served by the 
foregoing recital of incompetence, fatuity, 
and crime unless it led to an understanding 
of the underlying causes of Mexico's woes in order 
that a remedy may be found and applied. A short 
cut to enlightenment may be found in a brief 
r6sume of events since the patriot priest, Hidalgo, 
rang the grito, or alarm, upon the bells of his little 
church at Dolores in 1810 to call together a few 
friends to begin the revolt against the intolerable 
oppression of Spain which cost the mother country 
what had been her most important dependency in 
the new world for nearly three hundred years. 
After eleven years of conflict, in the second year of 
which Hidalgo paid with his life the penalty of his 
patriotism, Mexico, in 1821, established her inde- 
pendence and began her career as a self-governing 
nation under a form of democracy. 

In the ninety-eight years that have elapsed since 
then there has hardly been a year, except during 

194 



MEXICO UNDER CARRANZA 195 

the period under the ruthless rule of Diaz, that has 
not been marked by one or more attempts at 
revolution. That most of these attempts have 
been successful is shown by the fact that within 
this period Mexico has experimented with some 
thirty-eight different forms of government under 
eighty-five rules. 

During the fifty-five years which elapsed be- 
tween the date of her independence and the acces- 
sion of Diaz to power, she had tried thirty-six 
of these several forms of government under 
seventy-five rulers. This excessive mutability in 
government which probably no other people on 
earth ever passed through can only be accounted 
for by the existence among her leaders of a con- 
tempt for law and order, a spirit of selfish ambition 
and lust for power and an absence of the restraints 
of patriotism and devotion to the public welfare 
without a parallel in history. 

This contempt for law and order has affected 
the nation not alone through its influence on 
internal affairs; it has also resulted in several grave 
international complications. 

In 1838, Mexico became involved in serious 
difficulty with France, arising from outrages on 
the persons and property of French citizens at 
different periods of her revolutionary history. In 
that year the French Government, wearied with 
ineffectual demands for reparation, sent a fleet of 



196 MEXICO UNDER CARRANZA 

warships to bombard the fortifications of Vera 
Cruz. 

In 1837, at the request of President Jackson, the 
American Congress passed an act authorizing him 
to make final demand upon the Mexican Govern- 
ment for redress for numerous outrages that had 
been committed upon the persons and property 
of American citizens, and to use the naval forces 
of the United States to enforce such demand. 
After years of negotiation, signalized by numerous 
deceptions and violations of diplomatic agreements 
on the part of Mexico, the differences between that 
country and the United States were only partly 
adjusted and later, in 1846, became one of the con- 
tributing causes of the war between the two coun- 
tries. 

In 1 86 1, Spain, France, and England entered 
into an agreement to take joint action to enforce 
certain rights which they had against the Mexican 
Government, and this afterward led to French in- 
tervention and the short-lived empire of Maxi- 
milian. 

With the conclusion of the Maximilian epoch 
by his capture and execution, in 1867, the republic 
was again restored, with Juarez as president. In 
a short time his possession of the office was chal- 
lenged by Diaz, who failed in his attempt to unseat 
him, but, later, in a second revolutionary attempt 
against Lerdo de Tejada, who had succeeded 



MEXICO UNDER CARRANZA 197 

Juarez upon the latter's death, he was successful 
and took his place at the head of the government 
as President in 1876. 

For thirty-four years Diaz was in the actual 
control of Mexico's affairs, and during this period, 
with the exception of four years when his creature, 
Gonzales, was president, he was the official head 
of the Mexican Government. Although a number 
of revolutions were attempted during Diaz's in- 
cumbency, his great ability, and the stern use of 
force, enabled him to suppress that turbulent 
element which for more than half a century had 
been responsible for a condition of change and tur- 
moil, and to retain control of Mexico's affairs. 
During this period Diaz, for the first time in the 
experience of Mexico as a democracy, brought 
order, tranquillity, and a fair amount of honesty 
into the administration of its governmental af- 
fairs. He addressed himself earnestly to the ma- 
terial development of his country and, whatever 
may be thought of the character of the structure 
that he reared, there can be no doubt that during 
his term of power he showed that he was a con- 
structive statesman of great ability — a type of 
strong, original, and effective character rarely 
produced by any country oftener than once in a 
century or more. During his incumbency the 
material progress of his country was remarkable, 
but the beneficent results of that progress were so 



198 MEXICO UNDER CARRANZA 

unevenly distributed among the people that there 
at all times existed a smouldering discontent which 
was bound some time to result in revolt. It did so 
result when in November, 19 lo, Madero began his 
revolution against the man who, for so many years, 
had been president in name, and dictator in fact. 
Age had so weakened the strong man's control of 
affairs that, as the result of some months of activity 
on the part of the revolutionists, he, in 191 1, re- 
signed from the presidency and abandoned his 
country. 

When Diaz surrendered the office of president 
and left the country the interest had been paid so 
promptly upon the national indebtedness for more 
than a quarter of a century that Mexico's credit 
was equal to that of any nation in the world. 
During the last few years of the Diaz administra- 
tion, 36,500,000 pesos from the public revenues had 
been devoted to the building of great harbours and 
other public works, and at the date of his abdica- 
tion more than 75,000,000 pesos were in the na- 
tional treasury. The Mexican railroads, including 
those in which the government owned the stock 
control, were paying interest on their bonds and 
dividends to stockholders. Owing to the develop- 
ment of railroads and other public service enter- 
prises, mining, agriculture, and manufacturing, 
largely by foreign capital, hundreds of thousands 
of Mexican labourers of the peon class were receiv- 



MEXICO UNDER CARRANZA 199 

ing much higher wages in their service than they 
had ever before received. Persons and property 
were as safe in Mexico as on any other portion of 
the American Continent. The old warfare be- 
tween Mexican bandits and American citizens 
along the border, that had existed practically with- 
out interruption from 182 1 when Mexico gained 
her independence to the accession of Diaz to the 
presidency in 1876, had ceased for so long that 
none but the oldest inhabitants on the frontier 
could recall the time when the Texas rangers had 
been organized for the purpose of dealing with 
Mexican raids across the border. 

But, notwithstanding the fact that the adminis- 
tration of President Diaz had produced great de- 
velopment along many lines, and that a much 
greater degree of prosperity and comfort existed 
among a considerable portion of the working 
classes than ever before, there can be no doubt that 
a large majority of the labourers in the service of 
the great land owners were inadequately paid, as 
they had been since the native population was as- 
signed to the vast estates into which the country 
had been divided by the Spanish conquerors. Nor 
can there be any doubt that the welfare of the 
peons, descendants of the aboriginal inhabitants, 
constituting 80 per cent, of the population was 
not looked after as humanity and a proper concep- 
tion of the duties of a government to its people re- 



200 MEXICO UNDER CARRANZA 

quired. And, because it was felt that the peons 
had been permitted to remain in economic servi- 
tude and had been denied those opportunities for 
education and economic advancement to which 
every man is entitled, many friends of the Mexican 
people welcomed the success of the Madero revolu- 
tion in the hope that it meant a better chance in 
life for the submerged majority. 

But before Madero had become firmly seated in 
the presidency, it became evident that the old 
spirit of political unrest and unpatriotic lust for 
power and loot, which had destroyed the capacity 
of government for good from the date of its inde- 
pendence to the advent of Diaz, still existed. A 
half dozen revolutions were started against Ma- 
dero during the first two years of his term by other 
ambitious leaders. This struggle for power, and 
the consequent opportunity of robbing both public 
and private wealth, resulted in the unseating of 
Madero before he had served half the term to 
which he had been elected, and the assassination of 
himself, the vice-president and a number of his 
friends and supporters. 

Since the close of Madero's brief and tragic 
career the fact is only too plainly apparent that the 
unsettled conditions, with all their attendant evils, 
which existed previous to the Diaz period, have 
returned in full force. In the eight years since 
Diaz abandoned his office and his country Mexico 



MEXICO UNDER CARRANZA 201 

has had nine diflferent presidents and at no time 
has all her territory been subject to the National 
Government.^ At the present time its control 
is divided among a number of contenders for power 
and place, and the Carranza administration, which 
holds the largest area of the national territory, 
has so failed to impose its authority upon the 
whole, that a few months ago Mr. Cabrera, its 
leading official stated on the floor of the Mexican 
Congress that in at least five states, Carranza had 
no control. 



^Presidents of Mexico from Diaz to Carranza: 

1. General Porfirio Diaz, 1873-1883; 1888-May 25, 1911. 

2. Licentiate Francisco Leon de la Barra, May 25, 191 1- Nov. 
I, 1911. 

3. Don Francisco \. Madero Nov. i, 1911-Feb. 19, 1913. 

4. Licentiate Pedro Lascurian, 7:01 p.m. Feb. 19, 1913-7:46 p. m. 
Feb. 19, 1913. 

5. Gen. Victoriano Huerta, Feb. 19, 1913-July 15, 1914. 

6. Licentiate Francisco Carbajal July 15, 1914-Aug. 13, 1914. 
(The presidential office was vacant for six days and the city was under 
the command of Gen. Alvaro Obregon. From Nov. 25, 1 914 to Dec. 
13, 1914 the capital was occupied by the Zapatistas.) 

7. Gen. Eulalio Gutierrez Dec. 13-January 29, 191 5. He acted 
as executive in connection with the presidency of the convention and 
in charge of the executive power. He abandoned Mexico City. 

8. Gen. Roque Gonzalez Garza president of the revolutionary 
convention, succeeded as acting executive Jan. 30, 1915-May 30, 1915. 

9. Licentiate Francisco Lagos Chazaro. "The sovereign revolu- 
tionary convention'* decreed Lagos Chazaro successor to Gonzalez 
Garza and he took possession of the office July 31, 191 5 and retained 
it until the convention was dispersed by the Constitutionalist army 
in October, 191 5. 

10. Venustiano Carranza, August 20, 1914 to Nov. 24, 1914 First 
Chief of the Constitutionalist army in charge of the executive power. 
From Nov. 24 he abandoned the capital and removed the executive 
office to Vera Cruz. Elected Constitutional President March 11, 
1917- 



202 MEXICO UNDER CARRANZA 

Mexican finances have never been in such a dis- 
organized condition, nor has the national credit 
ever been so utterly destroyed. For five years 
no attempt has been made to pay interest upon 
any financial obligations. The nation's industrial 
and financial institutions have been so completely 
wrecked and its income so recklessly and dis- 
honestly administered, that during the last year 
the civilian employees of the government have been 
receiving only one half to three fourths of their 
nominal pay and many of the schools have been 
forced to close their doors for lack of funds to pay 
the teachers* salaries. The country, whose credit 
ten years ago was second to none, to-day cannot 
borrow a dollar in the money markets of the world. 

At no period have the laws for the protection of 
persons and property been so poorly enforced as 
at the present time. Within the year, the news- 
papers of the capital city have reported that the 
streets were not safe for pedestrians after 8 o'clock 
at night, as numerous robberies were being com- 
mitted, many of them by soldiers and officers in 
uniform. Never before has the government not 
only permitted, but encouraged and participated 
in, the lawless confiscation of private property to 
the extent that has characterized the course of the 
Carranza administration. Not for twenty-five 
years has employment been so uncertain and wages 
so low as at the present time. During the last 



MEXICO UNDER CARRANZA 203 

five years many thousands have died from starva- 
tion and the bad sanitary conditions that have re- 
sulted from the poor government, or lack of govern- 
ment, of the centres of population. 

So numerous and so great are the accumulated 
evils resulting from the contests for power and 
pelf, which various leaders have waged for eight 
years, that it is no exaggeration to say that the 
closing years of the first century of Mexico's ex- 
periment in self-government finds the masses of her 
people more hopelessly wretched than they have 
ever been during that long period, while the coun- 
try is now under the control of elements which 
give no promise of future betterment. 

The contemplation of such a failure of a people, 
during nearly one hundred years, to achieve any 
real progress in self-government, suggests that 
some factor, or factors, must exist which have 
worked with uncontrollable power against the 
good, and in favour of the bad. The cause most 
often cited as being responsible for the failure of 
popular government in Mexico, and especially for 
the wretched condition of the labouring classes, 
comprising 80 per cent, of the population, is agra- 
rian, caused by the holding of the lands in great 
bodies by a small number of persons and the denial 
to the masses of the opportunity to secure an 
interest in the land. Promises to amend this 
condition have been made by almost every one of 



204 MEXICO UNDER CARRANZA 

the more than a hundred leaders who have, in 
less than that number of years, begun important, 
and most often successful, attempts at revolu- 
tion. 

During the contest for Mexican independence 
the patriot leader Morelos recognized the need of 
a wider distribution of the land and made some 
attempt, in 1815, to allot holdings to the peons in 
that part of the country which the forces under his 
command controlled. But, notwithstanding the 
fact that almost every revolutionary leader who 
has succeeded in securing a following sufficient to 
unseat his predecessor and place himself at the 
head of the government, has announced, as a part 
of the "plan** upon which he founded his rev- 
olution, a determination to make provision for 
a broader distribution of lands to the common 
people, no successful and lasting effort has been 
made to accomplish this desirable end. All 
changes in land holding have been temporary and 
no continuing good has been accomplished. This 
would appear to indicate that no permanent relief 
of agrarian troubles can be obtained by dividing 
the land among a labouring class without educa- 
tion or means, which has for centuries been ac- 
customed to working as employees of the property- 
owning class, with no experience in the control of 
its own labour in independent industry, and to sug- 
gest that some other and more deeply seated cause 



MEXICO UNDER CARRANZA 205 

is responsible for Mexico's utter failure in her at- 
tempt at self-government. 

A somewhat extensive study of the history of 
Mexico has impressed me with the conviction that 
the basis of all her trouble is racial. Mexico is 
inhabited by two distinct races: one the descen- 
dants of the aborigines comprising probably 80 
per cent, of her total population, who furnish prac- 
tically all the common labour of the country — the 
''hewers of wood and drawers of water" — usually 
denominated "peons," and who, as a class, are 
uneducated and non-property-holding. The other 
20 per cent, of the population are the descendants 
of the Latin conquerors who, beginning by monopo- 
lizing all of the landed and other wealth of the 
country, and possessing all of its educated intel- 
ligence, have continued to hold that position of 
advantage, which has made them the governing 
race and conferred upon them, and made them re- 
sponsible for, the control of the uneducated and 
non-property-holding 80 per cent. 

The 20 per cent, of the Latin-Mexican popula- 
tion, includes the half-breeds or "mestizos," va- 
riously estimated as constituting a fourth to a third 
of the Latin element. 

A democracy, in order to be successful, must rep- 
resent the will of the majority. No people can 
effectively participate in government unless they 
are endowed with a cultivated intelligence en- 



2o6 MEXICO UNDER CARRANZA 

abling them to arrive at informed opinions. In 
order that participation of the majority in the 
government of a democracy may be effective, the 
masses must be educated. In the last analysis, 
the chance that Mexico will ever have a govern- 
ment that will insure the prosperity and happiness 
of its citizens depends upon the capacity of the 
majority of its people, and that means the great 
peon class, to receive and profit by education. 
Any successful effort to arrive at a correct judg- 
ment upon the causes of Mexico's failure in self- 
government, and of the possibility of her achieving 
successful government in the future must, there- 
fore, involve a study of the two races which com- 
pose her population. 

First, the investigator must appraise the char- 
acter of the minority, or Latin, race which, by 
virtue of its practical monopoly of property and 
educated intelligence, has given Mexico its govern- 
ment in the past, and this involves a study of the 
history, development and moral character of that 
race as it exists at present. 

Second, the investigator must study the history 
of the peon or native Indian races which compose 
the great majority of the inhabitants, and appraise 
their character and capacity for profiting by the 
opportunity for intellectual improvement which a 
chance for popular education may offer. 

Inasmuch as the Latin race is the one now in 



MEXICO UNDER CARRANZA 207 

power, and the race which has been, and will 
continue to be responsible for its government until 
the majority of its citizenship is elevated intel- 
lectually and morally by a widely diffused op- 
portunity for education, it would appear logical 
to consider the history and character of that race 
first. 

THE LATIN-MEXICAN 

The Latin element was, of course, introduced by 
Cortez when he conquered Mexico and established 
over it the government of Spain. As soon as the 
conquest was completed, the lands were divided 
among the Spanish conquerors, thus establishing 
the holding in large tracts, by a few owners, of the 
national domain. A history of the occupation of 
Mexico by the Spaniards says: 

" Inasmuch as the Indians formed the great bulk 
of the Hispano-American population, the king, of 
course, soon after the discovery, directed his atten- 
tion to their capabilities for labour. By a system 
of repartimientos they were divided among the 
conquerors and made vassals of the land holders. 
The capitation tax levied on every Indian varied 
in different parts of Spanish America from 
four to fifteen dollars, according to the ability of 
the Indians. They were doomed to labour on the 
public works as well as to cultivate the soil for the 
general benefit of the country, while by the im- 
position of the mita they were forced to toil in the 
mines under a rigorous and debasing system. Toil 



2o8 MEXICO UNDER CARRANZA 

and suflFering were the conditions of the Indians in 
Mexico after the conquest and it might have been 
supposed that the plain dictates of humanity would 
make the Spaniards content with the labour of 
their serfs without attempting afterwards to rob 
them of the wages of such ignominious labour. 
But even in this, Spanish ingenuity and avarice 
were not to be foiled, for the corregidores in the 
towns and villages to whom were granted minor 
monopolies of almost all the necessities of life made 
this a pretext for obliging the Indians to purchase 
what they required at the prices they chose to affix 
to their goods. The people groaned but paid the 
burdensome exaction while the relentless officer, 
hardened by the contemplation of misery and the 
constant contemplation of legalized robbery, only 
became more watchful, sagacious, and grinding in 
practice as he discovered how much the down- 
trodden masses could bear. There was no press 
of public opinion to give voice to the sorrows of the 
masses and personal fear even silenced the few who 
might have reached the ear of merciful and just 
rulers. At court the rich, powerful, and influential 
miners or land owners always discovered pliant 
tools who were ready by intrigue and corruption to 
smother the cry of discontent or to account plausi- 
bly for the murmurs which upon extraordinary 
occasions burst through all restraint until they 
reached the audiencia or the sovereign."^ 

If, as has been generally agreed by sociologists, 
the sure revenge of the servile class is found in the 

* "History of Nations," Vol. 22, page 104. 



MEXICO UNDER CARRANZA 209 

corruption of the master class, certainly no condi- 
tion has ever existed better calculated to destroy 
the moral fiber of a race than the condition of the 
Latin element in Mexico's population, during the 
three centuries between the Spanish conquest and 
attainment of natural independence. It should be 
understood that in what is said concerning the 
character of the Latin-Mexicans, the great ma- 
jority of that race is referred to. I know Latin- 
Mexicans who are men of ability and the highest 
probity and whom I am glad to call friends. But 
they are in a sad minority, and the very fact that 
they are honest men prevents their taking part in 
the activities of the party of robbers and violators 
of international law and diplomatic pledges, which 
now control the destinies of their country. Fur- 
thermore, the qualities of character which make 
them admirable have, in most instances, caused 
their banishment. 

Occasionally the Latin race has produced a 
popular leader of the highest character and most 
devoted patriotism. There can be no doubt of the 
honesty and the single-minded devotion to the 
public good of a leader like Hidalgo but unfor- 
tunately he represents the exception ; the rule has 
been found in such conscienceless demagogues as 
Santa Anna, Paredes, and Carranza, and the al- 
most numberless leaders who have not hesitated to 
plunge the masses of the people into the profound- 



2IO MEXICO UNDER CARRANZA 

est .misfortunes in order to gratify the selfish am- 
bition and greed of themselves and their followers. 
It is worth while to remember that, with a few 
exceptions, every revolution in Mexico has been 
led by some representative of the Latin popula- 
tion and the members of that race have, on account 
of their virtual monopoly of the property and the 
educated intelligence of the country, always con- 
stituted the great majority of its governing ele- 
ment. Even during the war for freedom, the 
character of this element was illustrated by an 
incident which occurred in the fourth year of that 
contest. After Morelos had succeeded Hidalgo 
as the leader of the revolutionary forces, in an 
effort to establish some form of regular government 
he summoned a national congress which he in- 
tended to be "a source of union to which his 
lieutenants might look as to himself in case of ac- 
cident." This congress was necessarily movable 
because it had to follow the patriot army. It was 
not only dependent upon the revolutionary forces 
for protection but also for sustenance, inasmuch 
as it was enabled to exist only by revenue secured 
by the armed forces. Shortly after the capture 
of Morelos by the Spanish forces, and Don Manuel 
Teran had succeeded him in command the con- 
gress enacted laws appropriating eight thousand 
dollars a year as a salary for each of its members 
and taking the management of the public funds 



MEXICO UNDER CARRANZA 211 

from the military commander and placing them in 
the hands of its own officials; thus making the com- 
manding general, to whom congress owed not only 
its protection, but its very livelihood, a mere de- 
pendent upon its authority. The congress was 
promptly dissolved by General Teran who said: 
"That instead of attending to the interests of the 
people its members were occupied in taking care of 
themselves and calling each other excellentisimos/'* 
The same historian, in describing Mexico's eleven 
years' struggle for freedom, is compelled to note 
the evil results to the patriots' cause of the selfish 
ambitions of individual leaders and he says, in 
speaking of the condition of the revolution in 18 17, 
the sixth year of its existence: 

" There was no longer among the insurgents any 
directing power to which the various chiefs would 
bow; each was absolute over his own followers and 
would brook no interference on the part of another 
leader; a combination of movements among them 
was rendered impossible by mutual jealousies and 
mistrust. Under these circumstances rule became 
a series of contests between the local authorities 
and hordes of banditti; and the wealthy and in- 
telligent part of the population began to look to the 
standard of Spain as the symbol of order." ^ 



^"Mexico and Her Military Chieftains;" Robinson, pages 57: 220. 
^"Mexico and Her Military Chieftains;" Robinson, page 74. 



212 MEXICO UNDER CARRANZA 

That the character of the Latin leadership did 
not improve is shown by the fact that within less 
than two years after Mexico became independent, 
the leader who had contributed most to that re- 
sult. General Iturbide, attempted to destroy all 
elements of democracy in the government and, for 
a short period, made himself emperor. Upon his 
removal by a revolutionary movement, still headed 
by the Latin element, General Victoria was made 
President. Of the administration of the first 
regularly installed head of the Mexican govern- 
ment as a democracy, the historian says: 

"During the administration of Guadalupe 
Victoria little was done to bring Mexico to that 
state of quiet and security so indispensable for the 
happiness and advancement of a country. The 
finances were badly administered and peculation 
was openly practiced in every direction."^ 

We have seen how one revolutionary leader 
after another achieved power and was in his turn 
displaced by a succeeding revolution, so that a 
historian writing of the condition of the country 
a few years after it had achieved its independence 
said: 

"We have now to trace a sad descent. We are 
to see the people gradually becoming corrupt, until 



^"Mexico and Her Military Chieftains;" Robinson, page 144. 



MEXICO UNDER CARRANZA 213 

they appear almost to lose the faculty of distin- 
guishing right and wrong. We are to watch the 
course of its principal men, see them become grad- 
ually more depraved and cease at last even to pre- 
tend to virtue. We shall see the treasury looked 
upon as spoils and proclaimed as an inducement to 
win partisans.'* ^ 

Another historical writer, in an effort to explain 
the action of Iturbide in endeavouring to establish 
a royalist government in Mexico, says: 

" It is probable that his penetrating mind distin- 
guished between popular hatred of unjust restraint 
and the genuine capacity of a nation for liberty, 
nor is it unlikely that he found among his country- 
men but few of those self-controlling, self-sacrific- 
ing and progressive elements which constitute the 
only foundation upon which a republic can be 
securely founded." ^ 

The thought most strongly impressed upon the 
mind of any student of Mexico's efforts at self- 
government is that, while its leaders have pro- 
duced declarations of principles, or ''plans" as 
they are called in revolutionary phraseology, which 
proclaimed in the most fervent language, unquali- 
fied devotion to the national welfare, the word 
"patriotism," as used by them, does not connote 

^"Mexico and Her Military Chieftains;" Robinson, page 150. 
^"History of Nations," Vol. 22, page 255. 



214 MEXICO UNDER CARRANZA 

that capacity for self-sacrifice, for sinking of all 
selfish interest, and devotion to the public good 
that it means when used on this side of the Rio 
Grande. In short, it may be truthfully said that 
nowhere in the world has Doctor Johnson's famous 
definition of patriotism as "the last refuge of a 
scoundrel" been so fully realized as among the 
Latin-Mexican governing class. 

The French sociologist, Gustave le Bon, as the 
result of his study of the influence of the Latin 
element on government in the Americas, says^* 

"In general and fundamentally the political 
problem of the Latin-American democracies is the 
problem of public thieving." 

This expression, as applied to all Latin-American 
republics, may be too broad, but it certainly does 
no injustice to the record made by the Latin ele- 
ment in Mexico. 

An educated and public-spirited Latin-Mexican, 
Francisco Bulnes, who for many years was promi- 
nent in the political, industrial, and literary life of 
his country as a member of its Senate and House 
of Representatives, a civil and mining engineer^ 
the head of various civic commissions, an editor of 
impMDrtant periodicals and a profound student of 
Mexican affairs, has recently published a book 
entitled, ''The Whole Truth about Mexico." 



MEXICO UNDER CARRANZA 215 

While this book reflects the bitterness of feeling, 
disgust and despair that may be natural in a 
patriot witnessing the frightful ruin wrought by 
the evil ambitions of some popular leaders and, 
therefore, may appear extreme in some of its state- 
ments, there can be no doubt that the intelligence 
and opportunity for knowledge which its author 
possessed make him an authority upon conditions 
in Mexico and give special value to his appraisal 
of the human element as it is reflected in the gov- 
ernment of that unhappy country. Bulnes, in 
explaining the causes which have led to Mexico's 
utter failure in self-government, says : 

" Unfortunately, it is a fact that the ideal of the 
middle-class family is to be part of this bureaucracy 
and that the ideal of the bureaucracy is to rob the 
union and individuals whenever possible. The 
mother is no longer the just matron who shed the 
radiance of her virtue over the home and reared 
men for God, country and humanity. In these 
days there are mothers who urge their husbands, 
sons, sons-in-law, and brothers to steal from their 
country. Sons are reared with this idea and it is 
carried to the point of inculcating that this public 
theft is a legitimate necessity, that it is an art, a 
sign of distinction. The result of this schooling in 
depravity has been that the lower classes have had 
this baneful example before their eyes for many 
years, which has destroyed the slender thread of 
civic virtue possessed by them at the time of the 
declaration of independence. It also threatens to 



2i6 MEXICO UNDER CARRANZA 

destroy all personal virtue, because it goes without j 
saying that a home which is a den of thieves cannot 
be the nursery of virtue and morality/* 

And again, in describing the spirit of public 
plunder which has actuated what the author 
refers to as the bureaucratic element, composed 
of those who serve their country in official posi- 
tions, he says : 

" In all the homes of bureaucrats, mothers, aunts, 
wives, sons and daughters, servants and friends ad- 
vised the head of the house to 'do business' with the 
government; if they were employed, even more so. 
'Doing business' with the government meant, of 
course, stealinp. They were advised to take every- 
thing on contract, from laying fifty thousand kilo- 
meters of railroad to removing the trash from 
public office, all to be manipulated so as to redound 
to the personal benefit of the contractor. If it was 
not possible to obtain contracts, the judges ought to 
steal sentences; the court secretaries the papers 
bearing on the case; the clerks, the public trust; 
the chiefs of departments, the office furniture, the 
hospital supplies, the prison food, the arms and am- 
munition of arsenals; they should rob the troops of 
their pay; impose fines upon all; steal justice under 
any form; steal wholesale and retail; steal even 
the ink stands, pencils, paper, typewriters, and 
typewriter ribbons, — in a word, everything that 
could be taken ought to be taken, however low and 



'"The Whole Truth about Mexico;" Bulnes, page 27. 



MEXICO UNDER CARRANZA 217 

unethical the means employed to accomplish it 
might be. * * * The passion for stealing was 
so ingrained that it became the life and soul, the 
warm, coursing blood, the master passion of the 
nation/' 



This dark picture would appear incredible if 
we did not find it repeated by various authorities 
and if we did not see it being reenacted with itS' 
darkest shades accentuated by the looting that 
characterizes the government which has been 
recognized by the United States. The story of 
Carranza has been written from day to day in the 
columns of Mexican newspapers, in the discussions 
in congress, in the operation of public utilities, 
such as the national railroads, where plunder, 
rather than public service, have been the end 
achieved by public officials. It must be always 
borne in mind that when the government of Mexico 
has been mentioned, government by the Latin 
minority race is always referred to. The bureau- 
crats denounced by Bulnes, the army paymasters 
who have robbed their pay chests, the railroad 
superintendents who have demanded bribes for 
transporting merchandise, the army officers who 
have been found selling the munitions placed in 
their hands by the national government to the 



^"The Whole Truth about Mexico;" Bulnes, page 149. 



2i8 MEXICO UNDER CARRANZA 

various bandit forces, are nearly all members of 
the governing Latin element. 

All this constitutes a discouraging picture which 
would be without a ray of hope for the future if we 
could not discover in the 80 per cent, of the Mexi- 
can people who are descendants of the aboriginal 
inhabitants, some qualities which, if encouraged 
and developed, might promise to furnish that moral 
element which, so far, has been conspicuously 
lacking in the great majority of the Latin 
population and which must be brought out if 
popular government is ever to be made successful. 
So the investigator must turn to the peon ele- 
ment. 

The Native Mexican 

When Cortez conquered Mexico, it was oc- 
cupied by a number of distinct families, or tribes, 
so that the learned Mexican, Orozco y Barra says 
there were eleven distinct language families, com- 
prising thirty-five idioms and eighty-five dialects. 
The most important of these tribes or families were 
the Aztecs and probably next in importance the 
Tezcocans. 

The Aztecs, while not in complete control of the 
area which now composes Mexico, were the domi- 
nant power of the table-land and had their great 
capital city in its central valley. As nearly as can 
be learned, they occupied the country in A. D. 



MEXICO UNDER CARRANZA 219 

1325 and were, previous to that time, nomadic in 
their habits. 

The Tezcocans occupied a portion of the great 
central valley and appear to have marched with 
the Aztecs in their development of civilization. 
The descendants of both the Aztecs and Tezco- 
cans, together with those of all other native popu- 
lations, have come to be referred to as Indians or 
peons, and have, since the Spanish occupancy, 
constituted the common labourers of the country. 
These two great races had proved their native 
intellectual power by developing a civilization be- 
tween 1325 and 1 5 19, when the Spaniards under 
Cortez first introduced them to the old world, of 
which Prof. Thomas Wilson, the ethnologist, says: 

" The culture of the aborigines occupying Mexico 
and Central America was of a totally different 
character from that of the other aborigines of North 
America. They were sedentary, agricultural, re- 
ligious, and highly ceremonious; they built them- 
selves monuments of most enduring character, the 
outside of the stone walls of some of which were 
decorated in a high order of art, resembling more 
the great Certosa of Pavia than any other monu- 
ments in Europe. The mounds for ceremony or sac- 
rifice were immense. The manufacture and use of 
stone images and idols was extensive and surprising 
to the last degree. The working of jade and the ex- 
tensive use thereof surpasses that of any other 
locality in prehistoric times. Their pottery excites 



220 MEXICO UNDER CARRANZA 

our wonder and admiration; some specimens for 
f heir beauty, their elegance of form, and fineness of 
decoration; other specimens of idols or images are 
astonishing on account of the precision of their 
manufacture and the difficulty of its accomplish- 
ment by hand." ^ 

The material progress of the aborigines was 
shown not only by their architecture and manu- 
facturing, but by the extent to which they had 
developed horticulture and agriculture, as wit- 
nessed by the descriptions of the exquisite pleasure 
gardens and parks surrounding the residences of 
the kings of the country and their nobles. 

Prescott describes with much enthusiasm the 
system of laws which these people had established 
and the judiciary they had organized for enforcing 
them. And when Prescott, writing of the crime 
of larceny, says: ''Yet the Mexicans could have 
been under no great apprehension of this crime, 
since the entrances to their dwellings were not 
secured by bolts or fastenings of any kind," he 
mentioned the quality which differentiated the 
native Mexican from the descendants of the con- 
quering Latin race more clearly than does any 
other racial characteristic. 

They had created a highly developed machinery 
of government, with systems of public revenue, of 

* "History of Nations," Vol. 22, page 80. 



MEXICO UNDER CARRANZA 221 

military and civil service, and had developed a 
method of recording, in permanent form, not only 
the history of their country, but the daily trans- 
actions of business and government. 

The work of their artisans in metal was described 
by their Spanish conquerors as exquisite in its 
artistic perfection and the few examples of it still 
remaining in European museums bear out the 
truth of this description. 

The intellectual advance of the people is well 
demonstrated by the fact that their astronomical 
researches and development of the science of 
mathematics had enabled them to devise a calendar 
more accurate than that which Imperial Rome 
possessed in its proudest days. 

While most of the literature which the native 
races had placed in permanent form was destroyed 
through the narrow superstition of their Spanish 
conquerors, a few examples have been preserved 
which indicate not only a high degree of mental 
refinement but a very elevated code of morals. 

Any one who has read the translation of the 
poem of a Tezcocan king, and the letter of advice 
of an Aztec mother to her daughter, contained in 
the appendix of Prescott's ''Conquest of Mexico," 
must have a high idea of the intellectual and moral 
qualities of a people capable of producing such 
expressions of elevated thought. And there ap- 
pears to be no doubt that the civilization of the 



222 MEXICO UNDER CARRANZA 

Aztecs and Tezcocans had spread until it existed 
in a greater or less degree throughout all the coun- 
try which we now know as Mexico. 

That people of the character of the native races 
of Mexico as described by historians should now be 
represented after four hundred years by those whom 
travellers know as the ignorant and often brutalized 
peons, would seem incredible were it not that the 
world has had such terrible and pitiful examples of 
the power of injustice, wrong, and oppression to 
produce racial disintegration and degradation. 

It is an historical fact known to students of 
sociology that the servitude most destructive of the 
physical, moral, and intellectual qualities of its 
victims is economic and industrial rather than 
chattel. It has been often said that the chattel 
slave finds protection in the fact that he stands as 
the representative of a certain amount of property 
or wealth to his master, while the economic slave 
represents to his employer, if he be unrestrained by 
the prickings of conscience, only the labour that can 
be obtained from him. As illustrating this, it may 
be said that probably no owner of chattel slaves 
ever treated them so harshly as some mill owners 
of England who chained children to spinnmg and 
weaving machines, so that they could not flee from 
the torment of their occupation, before England 
became wise enough to protect her people from 
such conscienceless exploitation. 



MEXICO UNDER CARRANZA 223 

Prescott has made sympathetic note of the ef- 
fect of the tyranny of the conquering race upon the 
native races of Mexico. He says: 

"Those familiar with the modern Mexican will 
find it difficult to conceive that the nation should 
ever have been capable of devising the enlightened 
polity which we have been considering. But they 
should remember that in the Mexicans of our day 
do they see only a conquered race as different from 
their ancestors as are the modern Egyptians from 
those who built, — I will not say the tasteless pyra- 
mids, — but the temples and palaces whose magnifi- 
cent wrecks strew the borders of the Nile at Luxor 
and Karnak."^ 

The account of the industrial slavery of the 
aboriginal Mexicans contained in the historical 
quotation appearing in part first of this chapter 
goes very far toward explaining their racial degra- 
dation. 

That the account quoted of the treatment of the 
aboriginal Mexican population by their Latin mas- 
ters is no different from that which would be found 
in any honestly written history of Mexico, and that 
the conditions described have continued since the 
end of Spanish control to the present time, is shown 
by the following, taken from Mr. Bulnes's book: 

"The planters have been accused of treating 
their Indian servants with haughtiness and disdain. 



1" Conquest of Mexico"; Prescott, Book i, Chapter II, 



224 MEXICO UNDER CARRANZA 

It is true, but what the accusers conceal is that the 
bureaucrats, poHtical and non-poHtical, have ever 
accorded the same treatment to the Indian. It is 
only the demagogues who love, venerate, exalt, and 
protect them in their harangues, when they think 
it will help to secure their votes or obtain universal 
applause, bringing them favourably before the pub- 
lic and making them feared by the government. 
Even the most ragged, unwashed, vicious loafer of 
the cities assumes an air of superiority and the tone 
of a potentate toward the unfortunate Indian. 
The best proof that all Mexico looks upon the 
Indian as an inferior, is that every one addresses 
him in the familiar form of 'tu' (which expresses 
confidence and affection when addressed to an 
equal, but condescension when directed toward an 
inferior), and that every one orders him about as 
though he were a slave. This attitude of imagi- 
nary superiority is not found exclusively among the 
Mexican Creoles and mestizos, but in every part of 
Latin America where there are domesticated In- 
dians. We do not have to go further back than 
forty years to find the time when the population 
was divided into 'gente de raion (rational beings) 
and Indians; and at the present time the popula- 
tion of mestizos is designated 'genie de rai&n', in 
contradistinction to the Indians."^ 

Most interesting and enlightening evidence of 
the way in which the so-called democratic govern- 
ment of Mexico, as controlled by the Latin element 
representing the employing interests, has exploited 

'*The Whole Truth About Mexico"; Bulnes, page 74. 



MEXICO UNDER CARRANZA 225 

the peon population by legislation is shown in its 
dealing with what was known as the Ejidos lands. 

Before the advent of the Latin in Mexico and 
since, many of the labouring class lived in small 
settlements or villages. To these villages, from 
Aztec times, appertained certain areas known as 
Ejidos lands, which were the common property of 
all. Upon these village commons the peon could 
have a garden, or maintain a few goats or fowls. 
This small opportunity of" contributing to the 
family livelihood relieved him from absolute eco- 
nomic dependence upon the employer upon whose 
great estate he worked. 

Some years ago a law was passed by the Mexican 
Congress under the provisions of which the com- 
mon lands, the use of which the villages of peon 
labourers had enjoyed for hundreds of years, were 
sold and became the property of the employing 
class. Thus was destroyed by act of the national 
government the last refuge which the peon had 
from absolute economic exploitation by the em- 
ploying class. 

But hope can be found for the future of the 
masses under the stimulus of proper opportunity 
for intellectual development in the fact that 
through the darkest experience of their night of 
servitude and degradation, individual members of 
the race have shown more than ordinary ability. 
An instance of this is found in the historical work 



226 MEXICO UNDER CARRANZA 

of Ixtlilxochitl, often referred to and quoted by 
Prescott. This historian, who had produced a 
most interesting and authoritative account of his 
people, was a descendant of the royal family that 
furnished the kings of Tezcoco. 

The fact that Mexico's most talented painter 
was a pure-blooded Aztec, would seem to indicate 
that the race has not lost the capacity for artistry 
as expressed in some of their creations which ap- 
pealed so strongly to the admirationpf their Spanish 
conquerors. 

I was much interested in an account by Mr. E. 
L. Doheny, who first discovered and developed 
Mexico's great petroleum deposits, of his expe- 
riences with the common labourer. Mr. Doheny, 
being a man of warm humanitarian impulses, de- 
cided that it was his duty so to manage his Mexican 
enterprises that they should contribute as much as 
possible to the comfort and well-being of the com- 
mon people. As one means to that end, shortly 
after he first began work in the oil fields nearly a 
score of years ago, he secured numbers of peon 
boys who were given a careful apprenticeship in 
the mechanical department. He assured me, with 
warm expressions of gratification, that these boys 
developed into mechanics of the highest order, so 
that he was finally able to entrust to them import- 
ant mechanical work of his great plants, some of 
which required a very high type of skill. 



MEXICO UNDER CARRANZA 227 

The most brilliant and interesting example of 
what the native Mexican can do when he has an 
opportunity for mental development is afforded 
by Juarez, a pure-blooded descendant of aboriginal 
ancestors, a lawyer by profession, who in the course 
of his career demonstrated himself to be a leader 
of great ability and a true patriot. 

Almost without exception, foreigners who have 
had years of experience in employing Mexican 
labour have testified to the moral character, the 
loyalty to his employer, and fidelity to his duties, 
exhibited by the peon when he has not been 
corrupted by the evil influences of the Latin, 
element. 

As the result of careful investigation and obser- 
vation, I hope and believe that if the descendants 
of the aboriginal Indians of Mexico should ever 
have accorded to them a full and free opportunity 
for intellectual and moral improvement, they may 
be made an element in the citizenship upon which 
a successful democracy may be founded; but I am 
forced to the conclusion that, so long as the Latin 
element is in power, this opportunity will never be 
conceded to the majority race. 

A somewhat extensive reading of history has 
failed to show an instance in which a country oc- 
cupied by two distinct races, with the minority race 
in control by reason of its possession of the property 
and educational opportunities, a government fair 



228 MEXICO UNDER CARRANZA 

to the majority has ever resulted. Students wno 
are interested in this phase of government will find 
a striking parallel between the history of Mexico 
during the four hundred years that her territory 
has been occupied by a majority aboriginal race, 
and a governing minority alien race, and that of 
Egypt, during the more than twelve hundred years 
since that country was conquered by the Moham- 
medan Arabs. When this race conquered Egypt, 
they became the possessors of its land and of what 
educational opportunities existed, and thereby be- 
came the governing element, although they were 
always much in the minority. 

The majority native race became the labouring 
class, commonly known as the fellaheen — the 
hewers of wood and the drawers of water for the 
governing class. This condition continued for 
about nine hundred years until the country was 
conquered and its government taken over by the 
Turks. Afterward the Turks, associated with the 
Arabs, who were of the same religion, continued to 
be the governing element, with the fellaheen ma- 
jority still continuing to furnish the common labour 
of the country. Just how this minority of prop- 
erty-owning and educated aliens controlling the 
non-property-owning majority of the native race 
has worked out for twelve hundred years, is shown 
in a most interesting way in Lord Cromer's great 
book ''Modern Egypt." We find there the same 



MEXICO UNDER CARRANZA 229 

conditions appearing to result from the corrupting 
influence of the servile majority working upon the 
moral character of the governing minority, that 
we have found in the history of Mexico. 

For more than twelve hundred years the govern- 
ment went from bad to worse in corruption and 
inefficiency until, finally, it became necessary for 
an alien country, England, to assume control in 
order that it should be made to discharge its inter- 
national obligations and, at the same time, give 
a chance in life to the submerged majority. And 
there can be no doubt that since the English have 
controlled the Egyptian government, the fellaheen, 
for the first time in more than twelve hundred years, 
have had something approaching a fair chance 
in life. During all that period and until the con- 
trol of England was established, the fellah, who 
worked the lands and furnished practically all 
the other common labour, was the economic victim 
of his Arabian and Turkish masters. He was 
given of the results of his labour barely sufficient 
to sustain life; he was denied every opportunity 
for economic or intellectual improvement, and he 
became largely what the Mexican peon, under the 
economic rule of his Latin masters, is to-day. 
Under the control of the English administrators 
he has, for the first time, received something more 
than a bare living as the result of his industry and, 
by the extension of popular education, is beginning 



230 MEXICO UNDER CARRANZA 

to receive those opportunities for intellectual im- 
provement which will eventually make him a man 
among men and qualify him to take a part in the 
government of his country. 

Every student of Mexican affairs can read with 
much advantage Lord Cromer's work, especially 
Book IV, in which the story of the effect of the 
government of an alien minority upon the native 
majority of Egypt's inhabitants is told. 

The evidence of Mexican history, during the 
four hundred years in which that country has been 
controlled by an alien minority race, corroborated 
by the example of every other country in which 
similar conditions have existed, admits of but one 
conclusion; namely, that the ultimate salvation of 
Mexico depends upon its majority race being 
elevated and improved by a broad and effective 
scheme of popular education, and also by a chance 
for the betterment of its economic condition, which 
can only be afforded by an honest and efficient ad- 
ministration of its government. 

How these conditions may be brought about is 
the vital problem for which a solution should be 
found. That we cannot depend for it upon the 
Latin-Mexican element which has misgoverned 
Mexico for four hundred years would seem to be 
evident. We have seen by the testimony of his- 
torians of the past, and observers of the present, 
what has been and is the fate of the peon element 



MEXICO UNDER CARRANZA 231 

composing 80 per cent, of the population at the 
hands of the governing minority. 

The stories told by representatives of the Red 
Cross and other recent observers, as quoted else- 
where in this volume, seem to show that nearly a 
century of so-called "popular government" in 
Mexico has left the condition of the peon very 
much where it was when the government of Spain 
ended. During that period he has been appealed 
to for his support by more than a hundred leaders 
of revolution and each appeal promised him an 
amelioration of his condition. That the promises 
have not been made good by the last revolutionary 
leader, the Latin-Mexican chief of the party now 
in power, appears to be very fully established by 
evidence that cannot be disregarded. Looking back 
from his present pitiful condition, through the 
history of four hundred years, the peon can say 
with Prometheus: 

" No change, no pause, no hope ! Yet I endure." 

I cannot believe that the salvation of the Mexi- 
can peon can be brought about in any way other 
than that in which corresponding changes have 
been wrought in other countries similarly situated. 

What Mexico needs, and what I believe she must 
have, is the intervention in her affairs of some sav- 
ing power such as England has afforded to Egypt 
and our own nation has afforded to the Philippines, 
and to Cuba, in a degree, under the authority of 



232 MEXICO UNDER CARRANZA 

the Piatt Amendment. I had hoped that when 
the so called "A. B. C. Conference" of the diplo- 
matic representatives of Brazil, Chile, Argentina, 
Bolivia, Uruguay, Guatemala and this country 
met to consider the fate of Mexico it would by 
concert of action originate some such movement 
to rescue twelve millions of people from a condition 
which has for so long been a disgrace to our com- 
mon humanity. I had hoped that the peons would 
be given that chance in life which every man should 
have but which they never have had, and never 
will have at the hands of the governing element of 
their country if we are "to use the history of the 
past as a prophecy of the future." In saying this 
I realize fully that I am challenging the convic- 
tions, or the prejudices, of a great many people. 
For myself I can say that I am expressing a con- 
clusion which I have endeavoured to^avoid but 
which a conscientious study of Mexican history 
and conditions, with the sole desire of arriving at 
the truth, has forced upon me. 

If those who resent this conclusion would be 
better satisfied by continuing conditions in Mexico 
that have produced, and are producing, so much 
agony to so many human beings, they probably 
will be gratified, for there does not now appear to 
be any prospect of the sort of intervention in 
Mexico's affairs which I am forced to believe will 
be necessary before any permanent amelioration 



MEXICO UNDER CARRANZA 233 

of the condition of the unfortunate masses can be 
achieved. 

But this need not, and should not, interfere with 
some effort to better the condition of those victims 
of Mexican misrule who are citizens of other 
countries, most largely of our own. It is not neces- 
sary to establish by argument the correctness of 
the definition of our country's duty to its citizens 
living or having interests in other countries as that 
duty has been expressed in a hundred declarations 
from our Department of State, and never more 
fully, or correctly, than by the plank of the Demo- 
cratic National Platform of 19 12, already quoted. 
That our Government, since the revolutionary con- 
ditions in Mexico began nearly eight years ago, 
has not discharged that duty to our citizens having 
interests in Mexico nothing but the letter of our 
Secretary of State, quoted in Chapter IV, preceding, 
is needed to show. As a reason for this failure we 
have been told that it was our duty to show pa- 
tience and forbearance in our dealings with Mexico 
with the hope that such an attitude would be re- 
warded by such changes as would give to the un- 
fortunate majority of her people a government such 
as they had not had for four hundred years. There 
can be no doubt that officials in Washington who 
have dictated our policy with reference to Mexico 
believed this and were actuated by motives of 
what they conceived to be the highest humanitar- 



234 MEXICO UNDER CARRANZA 

lanism. But surely, before the lives and rights 
of so many American citizens were risked, our offi- 
cials should have made a careful effort to judge 
whether or not there was any reasonable indication 
that the element in Mexico which they were in- 
dulging, at so much cost to American citizens, could 
reasonably be looked to for the accomplishment of 
the humanitarian desires which inspired them. If 
those officials had realized that the element to 
which they were extending an indulgence so costly 
to many of our people had been responsible for 
Mexico's misgovernment for nearly a century, 
they certainly would have hesitated before staking 
so much upon the possibility of this element giving 
to Mexico a better government than it had ever 
before given. 

It will not do to say that the Carranza revolu- 
tionists expressed aspirations and intentions for 
the government of their country of the most 
exalted kind. History shows us that nothing is 
more characteristic of the Latin-Mexican element 
than the use of high-flown language in the declara- 
tion of their intentions where the government of 
their country is concerned. And the same history 
shows us that, during the ninety-eight years of the 
control of popular government by this same ele- 
ment, more than a hundred leaders of revolution 
have pledged their duty to their country in lan- 
guage as fervent and eloquent of patriotism as any 



MEXICO UNDER CARRANZA 235 

that the authors of the "Plan of Guadalupe" used 
in making pledges which they afterward promptly 
violated when trusted with the government of 
their country. Readers of history will recall the 
fact that Santa Anna, who was probably the most 
perfect demagogue ever produced in Mexico, em- 
bodied his pledge of duty to his country, and of 
sympathy for her unfortunate masses, in language 
as eloquent and high-flown as any ever used in the 
prcmunciamientos of that country's numberless 
revolutionary leaders. As a result of his eloquence 
and of the fact that he had lost a leg in the French 
bombardment of Vera Cruz, he succeeded in in- 
ducing his people to call him to the chief place in 
their government three separate times, and each 
time he signalized his election by promptly betray- 
ing the people whom he had pledged himself to 
serve. 

Certainly our government officials must see by 
this time how utterly false and hollow have been 
all the pledges made by the party now in power 
in Mexico, both to its own people and to the 
nations of the world. If this demonstration has 
been made, then the question would seem to arise: 
Is it worth while to continue to sacrifice the 
rights of our citizens for a consideration which we 
ought to know by this time will never be de- 
livered? If, as a people, we feel that we have no 
right to interfere to protect the vast majority of 



236 MEXICO UNDER CARRANZA 

the Mexican people from the long agony inflicted 
upon them by a minority of their countrymen, 
surely we have the right to intervene to protect 
our own citizens against the same criminal minor- 
ity. 

That right we have abrogated for nearly eight 
years, but there is yet time to accomplish a great 
deal that justice, to speak nothing of humanitar- 
ianism, would appear to call for if we would cease 
to expect at the hands of the dominant class of 
Mexico the justice for the masses which we hu- 
manely desire, and insist upon the sort of govern- 
ment which the rights of our citizens demand. 

In doing this we will be rendering a sort of ser- 
vice to the unfortunate masses of Mexico. If, 
when the spirit of loot and robbery began to assert 
Itself as a part of revolutionary conditions nearly 
eight years ago, we had said to the Mexican leaders : 
"You can kill and rob each other to your hearts' 
content; for we have no right to dictate what your 
actions shall be so long as they concern only your- 
selves, but if you invade the personal or property 
rights of any American citizen, we will use the 
whole power of our great nation to see that the 
offender is punished," we would not only have been 
rendering a proper service to our own citizens but 
a very humanitarian service to hundreds of thou- 
sands of Mexican workmen who were engaged in 
serving American enterprises in their country. 



MEXICO UNDER CARRAN2A 237 

That such an attitude upon our part would 
have prevented most of the evils which our people 
have suffered at the hands of revolutionists no one 
who knows the character of the Latin-Mexican 
leaders can have any doubt. The Latin-Mexican 
recognizes force as the only influence that can con- 
trol his actions. He has no conception of, and no 
respect for, any other influence. Like his brothers, 
the Bolsheviki, the L W. W., and the Germans, he 
cannot understand the failure or refusal to use force 
to accomplish a purpose if it is at command. 

By the policy that we have adopted we have 
not only encouraged every sort of offense against 
our own people but we have also encouraged the 
destruction of business enterprises in Mexico 
owned by our citizens and those of our allies upon 
which hundreds of thousands of the peon element 
of that country depended for a living. In addition 
to that, we have, as we now must know, by every 
encouragement and assistance that we have given 
the Carranza element, to that extent assisted in 
delivering the unfortunate masses of Mexico into 
the hands of the class which is now, as it always 
has been, their worst enemy. In a well-meant 
effort to serve these unfortunate people we have 
actually assisted in imposing famine and death 
upon thousands of them. 

In truth, the result of our handling of the Mexi- 
can question during the past eight years, and the 



238 MEXICO UNDER CARRANZA 

effect upon the masses of the people, who appeal 
most to our sympathy, of what we have done, 
emphasize the wisdom of the saying that *' sym- 
pathy without understanding is never effective and 
often dangerous." 

Certainly the results of our efforts to help the 
greatest sufferers in Mexico have not been such 
that we can point to them with pride or satisfac- 
tion. We have helped to destroy hundreds of 
American lives and hundreds of millions of Ameri- 
can property. We have also assisted in turning 
the government of Mexico over to a party which 
is destroying the lives of thousands of its own 
people and confiscating, and spending in vicious 
and immoral living, the property of other thou- 
sands. 

Would it not be better now for us to go back to 
the idea of doing our simple duty to our own people 
and leaving the Mexicans to their own devices, 
if we feel that we are not warranted in rescuing 
the suffering masses of them from the criminals 
who are imposing upon them so many of the miser- 
ies of "self-government'' as it exists in Mexico? 



APPENDIX I 

THE GENERAL LAW FOR THE CONSTRUCTION 
OF INTERNATIONAL AND INTER- 
OCEANIC RAILWAYS 

Ministry of Public Works, Colonization, Industry, and 
Commerce of the Mexican Republic. 

Section III 

The President of the Republic has directed to me the 
following Decree: — 

Porfirio Diaz, Constitutional President of the United 
States of Mexico, to the inhabitants thereof: Know 
ye— 

That the Congress of the Union has enacted the 
following: — 

The Congress of the United States of Mexico enacts: 

Only Article. The Executive is authorized to reform 
the contracts which he has celebrated for the construc- 
tion of international and interoceanic railways, and to 
celebrate new ones with another or other companies, 
which may present themselves, granting in each case a 
concession, without comprehending the arrangement 
of the English debt, upon the following bases: — 

I St. The concession or concessions shall be in force 
not more than ninety-nine years, and shall contain clauses 
relative to the reversion of the road to the nation free 
of all incumbrance, at the end of the term stipulated. 

239 



240 APPENDIX 

2d. The contracts shall be subject to the conditions 
alre'ady agreed, and the reforms already accepted by the 
soliciting companies, without modification, except to 
the advantage of the nation. 

3d. In order to treat with the companies, the Ex- 
ecutive shall require previously guarantees and securi- 
ties suitable to compel the execution of the enterprise. 
The greatest advantages which relatively any company 
offers in favour of the country shall bind the others. 
Upon those points, the Executive shall hear the opihion 
of the Attorney-General, which functionary shall give 
it in writing, within ten days, which having passed the 
Executive shall decide upon what is proper. 

4th. The international and interoceanic networks 
shall be divided into sections for the purpose of con- 
tracting for one or more (sections) with each company 
which has complied with the preceding requisites. 

5th. The maximum of the tariffs shall not exceed 
in any case the following figures: — 

For each ton of freight of 1,000 kilograms of mer- 
chandise, and for each kilometre of distance: — 

First Class . Jo. 06 

Second Class 0.04 

Third Class 0.02I 

Passengers per kilometre: — 

First Class ^0.03 

Second Class 0.02 

Third Class o.oij 

Warehousage 

For each 100 kilos or for each fraction of the same 
per day Jo.oof. 



APPENDIX 241 

The tariffs shall be revised every five years, the Min- 
ister of Public Works having power to reduce them in 
accord with the company; but in no case shall there be 
any right to advance the same beyond the maximum 
prefixed. 

The application of the tariffs shall always be made on 
the basis of the most perfect equality, the company not 
being able to concede to any one any advantage which 
it does not give to all who are in the same circumstances. 

6th. The mails shall be carried free, during the life 
of the concession. 

7th. The companies shall be considered Mexican 
in all which concerns their relations with the govern- 
ment and the rights and obligations stipulated in the 
respective concessions. 

8th. The Executive shall fix in the manner most 
convenient the terms of payment of the subsidies. 

9th. The Executive, in making use of this author- 
ization, shall not prejudice the rights acquired by the 
States in virtue of former concessions. 

loth. The concessionary companies, in case they 
can acquire them, shall utilize the lines which have been 
constructed upon the route adopted by them. Other- 
wise they may construct parallel lines. In either event, 
they shall not receive more than the excess of their own 
subsidy above that of the line already constructed. 

nth. The forfeiture of any concession having been 
decreed the nation shall acquire the ownership of the 
part of the way constructed free from all encumbrance 
and at a valuation fixed by experts named by the 
Executive and by the company. 

From this valuation shall be deducted the amount 
of the subsidies paid to the company, and for the re- 
mainder the Executive shall emit obligations secured 



242 APPENDIX 

by a mortgage of the road, which he may transfer by 
means of a new concession. 

The rate of interest which the obligations may bear, 
and the manner of retiring them, shall be fixed in each 
concession. 

1 2th. These authorizations shall be in force during 
the time of the recess of Congress, at the end of which 
the Executive shall give an account of the use which he 
has made of them. 



Given in the Palace of the Executive Power of the 
Union in Mexico, on the i st of June, 1880. 

PoRFiRio Diaz. 

(Translation, from "Mexican Central Railway Co., 
Limited.") 

Department of State and of Public Works, Coloniza- 
tion, Industry, and Commerce of the Mexican 
Republic. 

(Extracts from Contract between Manual Fernandez, 
Chief Clerk of the Department of Public Works, 
in representation of the Executive of the Union, 
and Sebastian Camacho and Ramon G. Guzman, 
in representation of the Mexican Central Railway 
Company, Limited, for the construction of two 
railway lines, one from Mexico to the Pacific Coast, 
and the other from Mexico to Paso del Norte). 

Chapter I. Construction of the Railways. 

Article i. . . . 

At the end of the ninety-nine years of the grant, the 
line will pass, in good condition and free of debt, to the 



APPENDIX 243 

control of the Republic; but the Government shall pur- 
chase all the stations, warehouses, work shops, rolling 
stock, tools, furniture, and fixtures which the Company 
may have for the use and operation of the road, and 
shall pay in cash the prices of said stations, storehouses, 
workshops, rolling stock, tools, furniture, and fixtures, 
fixed by two experts, one named by each party, and a 
third previouslv appointed by those two to act in case 
of discord. 

If the Government thereafter wishes to rent or sell 
the line the Company will be entitled to prefer- 
ence. . . . 



Article 5. . . . 

An engineer will be appointed by the Executive to 
accompany each party of surveying engineers. The 
salary of said engineer will be fixed by the Executive 
and paid by the Company, said salary not to exceed 
$4,000 per annum. 

• •••••• 

Chapter II. Basis of the Company. 

Article 13. . . . Within six months from the 
date of this contract, a part of the Board, consisting of 
five directors, shall reside in Mexico. Of these, two 
shall be appointed by the Government, and three by 
the Company. 

The Directors named by the Government may reside 
in Mexico or abroad. 

The salaries of the Directors named by the Govern- 
ment shall be fixed by the Executive and paid by the 
Company, and shall not exceed $3,000 per annum. 



244 APPENDIX 

Chapter III. Concessions and Prohibitions. 

Article 21. 

To aid the construction of the lines of railroad and 
telegraph to which this contract refers, the Govern- 
ment binds itself to give to the Company or Companies 
a subsidy of fc,500 for each kilometre of the road con- 
structed and approved by the Department of Public 
Works, according to the terms of this law. This sub- 
sidy shall commence to be paid after the completion of 
the first one hundred and fifty kilometres on the line 
from Mexico to Leon, and successively for each section 
of twenty-five kilometres. 

On the section from Mexico to Huehuetoca, and from 
Celaya to Irapuato, and generally on all the narrow 
gauge lines already built, and which, according to Ar- 
ticle 52, may be acquired by the Company or Companies 
the Government shall only allow a subsidy of $1,500 
per kilometre. 

Article 27. 

The Mexican Government will exact no taxes which 
are not expressed in the following article, for the simple 
traffic of passengers, correspondence, and merchandise, 
over the international and inter-oceanic lines during 
the period of twenty-five years, counting from the con- 
clusion of each one of said lines; and all effects and mer- 
chandise destined solely to traverse the road, and not 
for consumption in the country, shall be free from every 
kind of customhouse and port duties as well as from 
taxes and imposts of every class. 



APPENDIX II 
UNION AND CENTRAL PACIFIC RAILROADS 

Line of Road. — Omaha, Neb., to Ogden, Utah (Junction 
C. P. R. R.). 1032 miles. 

The Acts of Congress (approved July i, 1862, and 
July 2, 1864) incorporating the company provided for 
a government subsidy equal to J 16,000 per mile for that 
portion of the line between the Missouri River and the 
base of the Rocky Mountains; ^548,000 per mile for a 
distance of 150 miles through the mountain range; 
$32,000 per mile for the distance intermediate between 
the Rocky and the Sierra Nevada range; $48,000 per 
mile for a distance of 1 50 miles through the Sierra Ne- 
vada. The whole distance, as estimated by govern- 
ment, from Omaha to the navigable waters of the Paci- 
fic, at Sacramento, California, is 1,800 miles. The 
company has also a land grant equalling 12,800 acres 
to the mile. The original act provided that the govern- 
ment subsidy should be a first mortgage on the road; 
but by a subsequent amendment it was made a second 
mortgage — the company being authorized to issue its 
own bonds to an amount equal to the government as a 
first mortgage on the line. The original act provided 
that the charge for government transportation should 
be credited to it in liquidation of its bonds; and that in 
addition, after the road should be completed, 5 per cent. 

245 



246 APPENDIX 

of the net earnings should also be applied to the same 
purpose. The act was subsequently modified so as to 
allow the company to retain one half of the charge of 
transportation on government service, as the cost of the 
same, and also relieves the company from paying the 
5 per cent, of net earnings. 

(A claim having been made by the Secretary of the 
Treasury of the United States, that the company was 
bound to pay the interest on the bonds issued by the 
government to aid in the construction of the road, and 
that the whole charge for government transportation 
was to be held to be applied to such interest. Congress, 
by an amendment to the army appropriation bill 
which passed March 3, 1871, provided, "that, (sec. 
9,) in accordance with the fifth section of the act ap- 
proved July second, eighteen hundred and sixty-four, 
entitled *An act to amend an act entitled an act to aid 
in the construction of a railroad and telegraph line 
from the Missouri River to the Pacific Ocean, and to 
secure to the government the use of the same for postal, 
military, and other purposes', approved July first, eigh- 
teen hundred and sixty-two, the Secretary of the Treas- 
ury is hereby directed to pay over in money to the Paci- 
fic Railroad Companies mentioned in said act, and 
performing services for the United States, one half 
of the compensation, at the rate provided by law 
for such services heretofore or hereafter to be rendered; 
provided, that this section shall not be construed 
to affect the legal rights of the government or the 
obligations of the companies, except as herein specifically 
provided."') 

(Poor's Manual of the Railroads of the United States, 
1872-73, p. 389) 



APPENDIX 247 



CENTRAL PACIFIC RAILROAD 

. . . By an amendatory act, passed by Congress 
April 4, 1864, the Central Pacific was made a body cor- 
porate, with authority to own such portion of the road 
as it might construct east of the eastern boundary of 
the State of CaHfornia. The company possesses ample 
chartered powers, both from the States of California 
and Nevada and from the federal government. 

For that portion of its line between Sacramento and 
the base of the Sierra Nevada Mountains, a distance 
of 7.18 miles, the government subsidy is at the rate of 
$16,000 per mile, in its 6 per cent, bonds. For the suc- 
ceeding 150 miles through the Sierra Nevada, at the 
rate of $48,000 per mile; and $32,000 per mile for such 
other portion of the line constructed west of the Rocky 
Mountains. The government subsidy is a second 
mortgage upon the road, the company being especially 
authorized by an act of Congress to issue its own bonds 
equal in amount to the government aid, as a. first mort- 
gage on the road. In addition to pecuniary aid, Con- 
gress granted ten alternate sections of public lands on 
each side of the line of the road — or 12,800 acres per 
mile. 

(Poor's Manual of the Railroads of the United 
States, 1872-73, pp. 529-30). 



APPENDIX in 

Revised list of American citizens killed in Mexico by 

armed Mexicans, during the revolutionary period | 
between December, 1910, and September i, 1916. ' 

Total, 285 killed, including 17 sailors and marines at 
Vera Cruz, 17 citizens and soldiers at Columbus, N. M. 
Not including soldiers and officers killed at Carrizal 
and 30 others not verified as to dates, etc., killed in 
Mexico. 
Adams, William, Near Ascension, Chihuahua, May i, 

1 91 2, Federal officer. 

(Adams was shot while attending funeral of his 

wife.) 
Akers, Bert, Chihuahua, Jan. 21, 19 16, Mexicans. 
Alamia, John B., Rio Bravo, Tamaulipas, 191 3, Un- 
known bandits. 
Allen, Oscar, Pearson, Mar. 16, 1914, Unknown bandits. 

(Murdered with an axe. Employee of Madera Co.) 
Anderson, Mrs., daughter and neighbor. Chihuahua, 

June 22, 191 1, Madero soldiers. 
Anderson, Maurice, Santa Ysabel massacre, Jan. 9, 

191 6, Villistas. 
Anton, George. 

Atwater, Herbert, Vera Cruz, 191 5, Unknown bandits. 
Austin, A. L. Near Matamoros, 191 5, Unknown bandits. 
Austin, Chas,, Near Matamoros, Aug. 7, 19 14, Carran- 

zistas. 

(Chas. Austin, son of A. L. Austin, killed in 191 5.) 

248 



APPENDIX 249 

Ayers, Bowan, Patzcuaro, Michoacan, Aug. 14, 191 2, 

Unknown bandits. 
Bagnell, Captain, Near Tampico, 191 4, Bandits. 

(Capt. Bagnell an English subject.) 
Batamia, Juan, Matamoros, 191 5, Order Gen. Blanco. 
Barrett, Thos., Cinco Minas Works at Hostolipaquillo, 

Jalisco, 191 3, Bandits. 
Bauch, Gustave, Juarez, 191 4, Villa. 
Bean, Edgar, Puerto Cifes, Sonora, 191 5, Bandits. 
Beard, James, Parras, Coahuila, May, 1914, Bandits. 
Bennett, J. N., Tampico, 191 5, Carrancistas. 
Benton, Thos., In Villa's office, Juarez, April 9, 1914. 

(Benton was an English subject and his murder 
was made a subject of correspondence between 
England and this country.) 
Billings, Roscoe, Near Mexico City, Feb., 191 5, Carran- 

zistas. 
Bird, Near Tampico, 191 5, Carrancistas. 
Bishop, Tomesachic, Nov., 191 4, Carranza soldiers. 
Bishop, Mrs. W. I., Mexico City, Feb. 11, 1913, 

Rebels. 
Blackenburg, Herman, Near Chihuahua, Mar. 30, 19 16, 

Bandits. 
Boley, Bernard, Near Raymondville, Matamoros, 191 5, 

Bandits. 
Boone, Chas., Guzman, Oct. 28, 191 5, Villa soldiers. 
Boris, Gerew, Near Nueva Vista, Feb. 20, 191 2, Ban- 
dits. 
Boswell, Louis Frank, Vera Cruz, April 24, 19 14, Mex. 

Federals. 
Brooks, "Johnny**, Colonia Chuichupa, Bandits. 
Brown, C. M., Mazatlan Section, 1915, Indians. 
Burton, Henry Knox, Santa Rosalia, July 6, 1913, 

Carranza soldiers. 



250 APPENDIX 

Burwell, Weston, NearTampico, 19 14, Carrancistas. 
Buyrd, W. M., Jr., Tampico, 191 5, Bandits. 
Bushnell, L., Mexico, Mar. 24, 191 3, Bandits. 
Butler, Jas., Columbus, N. Mex., Mar. 10, 1916, Villa 

soldiers. 
Camera, Eugene, Lencho, Sonora, 191 5, Indians. 
Camp, John, EI Paso, Texas, May 9, 191 1, Bandits. 
Carroll, John G. D., Alamo, Lower Cal., June 11, 191 1, 

Federal soldiers. 
Carruth, Mrs. Lee, and five children, Cumbre Tunnel, 

Feb. 4, 19 1 4, Rebels. 
Chapel, F. C, Nogales, Sonora, 19 14, Mexican soldiers. 
Crawford, James, Vera Cruz, 191 5, Unknown bandits. 
Clarke, Dr. R. C, Mexico City, May 27, 191 1. 

(Dr. Clarke was from Taylorsville, 111., and was a 
partisan of Felix Diaz.) 
Cohen, Glen Springs, May 6, 19 16, Mexican raiders. 
Colee, Glen Springs, May 6, 19 16, Mexican raiders. 
Compton, Harry, Chihuahua City, 191 5, Unknown 

bandits. 
Compton. . . .^ Glen Springs, May 6, 19 16, Mexi- 
can raiders. 
Cooper, Clarence, Pearson, May 4, 191 3, Unknown 

bandits. 
Corbett, William, Near Minaca, 1916, Villistas. 

(Corbett was an employee of Palomas Land & 
Cattle Co.) 
Corrie, William W., On board S. S. California, Apr. 1 1, 

191 3, Carranzistas. 
Couch, A. H., Santa Ysabel, Jan. 9, 1916, Unknown 

bandits. 
Coy, Juan, Monclavo, 191 5, Unknown bandits. 
Cramer, Roy, Guerrero district, Jan. i, 1916, Villistas. 
Critchfield, Geo., Tuxpam, Apr. 7, 191 1, Revolutionists. 



APPENDIX 251 

Cromley, Henry, Purandire, Michoacan, Jul. 21, 19 12, 

Mex. man serv. 
Dalrymple, Chas., Victoria, 191 5, Unknown bandits. 
Darrow, Berris, Nueva Buena, Feb. 2, 191 3, Unknown 

bandits. 
Davidson, W. A., Columbus, N. Mex., Mar. 10, 191 6, 

Villa soldiers. 
Dean, J. S., Columbus, N. Mex., Mar. 10, 19 16, Villa 

soldiers. 
DeFabir, C. G., Vera Cruz, Apr. 22, 1914, Federal 

soldiers. 
Delawry, F. T., Vera Cruz, Apr. 22, 19 14, Federal sol- 
diers. 
Deverick, Frank, Vera Cruz, Apr. 22, 19 14, Federal 

soldiers. 
Dexter, Edward C, 191 5, Oaxaca Indians. 
Diepert, Geo. A., Juarez, 191 5, Unknown bandits. 
Dingwall, Wm. B. A., April 30, 191 3, Rebels. 
Dixon, Chas., Juarez, Jul. 26, 191 3, Mexican soldiers. 
Donald, Bruce, Near Guerrero, 191 6, Villistas. 
Donaldson, R. E., Near Matamoras, 191 5, Unknown 

bandits. 
Donavan, J. J., Esperanza, Sonora, 191 5, Indians. 
Doster, Edward D., Mexico City, May, 1914, Unknown 

bandits. 
Davidson, Roderick, Rosario Station, Tepic, Apr. 5, 

1 91 6, Unknown bandits. 

(Body taken to Mazatlan and buried under super- 
vision of American Consul Alger.) 

East, Victor W., Campeche, 191 5, Unknown bandits. 
Eckles, Temosachic, Nov., I9i4» Federal soldiers. 
Edson, John, Evanado, Guadalajara, 191 5, Unknown 
bandits. 



252 ^ APPENDIX 

Edson, Mrs., Evanado, Guadalajara, 191 5, Unknown 
bandits. 

Edwards, J. C, Agua Prieta, Apr. 13, 191 1, Villistas. 

Ely, Isaac R., Tampico, 191 5, Villistas. 

Ernest, Howell, . . . 

Evans, Thos., Santa Ysabel, Jan. 9, 19 16, Villistas. 

Farrell, Tom, Hermosillo, 191 5, Indians. 

Fay, W. A., Esperanza, 191 5, Unknown bandits. 

France, Wenceslao, Acala, Chiapas, Sept. 23, 191 1, 
Indians. 

Ferguson, R. H., 191 5, Unknown. 
(By bullet fired across the river.) 

Fischer, E. C, Vera Cruz, Apr. 24, 19 14, Federal sol- 
diers. 

Forney, Ernest, Brownsville, 191 5, Mexican raiders. 

Foster, Dr. Allan, L., Alamo, Lower Cal., June 1 1, 191 1, 
Federal soldiers. 

Fountaine, Thos., Jimenez, Mar., 191 2, Orozquistas. 

Fowler, Wm. E., Tuxpam, Mar. 9, 191 1, Mexican peon. 

FroHebstein, E. H., Vera Cruz, Apr. 22, 1914, Federal 
• soldiers. 

Fried, L. O., Vera Cruz, Apr. 22, 1914, Federal soldiers. 

Gillette, Frank, Rosa Morda, Tepic, Dec. 10, 191 1, 
Bandits. 

(Gillette was formerly a resident of Cleveland. 
Murdered at his plantation. His wife was tied 
to a tree while husband was killed as she looked 
on.) 

Gilmartin, M. J., Cumbre Tunnel, Feb. 4, 191 4, 
Bandits. 

Goldsborough, Chas., Fuerte dist. Sinaloa, 191 5, In- 
dians. 

Three sons of John Goodman, Acapulco, Apr., 191 1, 
Unknown bandits. 



APPENDIX 253 

Grigalva, Reyes, Nogales, 191 5, Mex. policeman. 
Griifm, Benj., Chihuahua, Jul. 5, 191 3, Unknown 

bandits. 
Griffin, Fred A., Columbus, Mar. 10, 1916, Villistas. 
Griffith, Mrs. Percy, Mexico City, Feb., 1912, Unknown 

bandits. 
Haggerty, David A., Vera Cruz, Apr. 21, 1914, Federal 

soldiers. 
Hall, Alexander, Santa Ysabel, Jan. 9, 1916, Villistas. 
Hamilton, Victor, NearTorreon, Jan. 15, 1916, Villistas. 
Harmon, E. M., Chihuahua, 191 5, Unknown bandits. 
Harper, A. N., South of Nogales, Nov. 12, 191 5, Un- 
known bandits. 
Hart, H. M., Columbus raid. Mar. 10, 19 16, Villistas. 
Harvey, James W., Chihuahua, May, 19 12, Mexican 

rebels. 
Harwood, P. W., Lower California, Jan. 28, 19 14, 

Federal soldiers. 
Hase, H. C, Santa Ysabel, Jan. 9, 1916, Villistas. 
Hays, Edmund, Madera, Chihuahua, 191 3, Federal 

soldiers. 
Hidy, John Camp, San Luis Potosi, May 18, 191 1, 

Bandits. 
Hertling, John, Douglas, Arizona, July, 1912, Orozco 

rebels. 
Hadley, C. B., Guadalajara, 191 5, Unknown bandits. 
Hobbs, Sergt. M. A., Columbus raid. Mar. 10, 19 16, 

Villistas. 
Holmes, Mrs. Minnie L., Mexico City, Feb. 12, 191 3,. 

Carranza bandits. 
Howard, Frank, Coalcoman, Michoacan, Mar. 13, 191 3, 

Unknown bandits. 
Howard, John S. H., Eagle Pass, Texas, Feb. 10, 191 3, 

Unknown bandits. 



254 APPENDIX 

Horace, Frank, Coalcoman, Michoacan, Mar., 191 2, 

\ Mexican rebels. 
Huntington, Robt., Agua Prieta, Apr. 13, 191 1, Carran- 

za bandits. 
Jacoby, James, Chihuahua, 191 5, Carranza bandits. 
James, Mrs. Milton, Columbus raid. May 10, 191 6, 

Villistas. 
Jensen, Chas., Near Matamoros, 191 5, Unknown 

bandits. 
Jones, Harry J., Ojo de Agua, Texas, 191 5, Mexican 

raiders. 
Johnson, Guy, Chihuahua, Feb. 10, 1916, Unknown 

bandits. 
Johnson, Thos., Santa Ysabel, Feb. 9, 19 16, Villistas. 
Joyce, Martin S., Ojo de Agua, Texas, 191 5, Mexican 

raiders. 
Kane, Thos. C, Apr. 10, 191 2, Unknown bandits. 
Keane, Peter, Jan. 8, 19 16, Villistas. 
Kelly, Dr. E. E., Sonora, 19 14, Indian soldiers. 
Kelly, Patrick J., Velardena, Durango, Sept. 29, 19 12, 

Unknown bandits. 
Kelly, Patrick, Cumbre Tunnel, Feb. 4, 19 14, Bandits. 
Kendall (engr.), Near Brownsville, 191 5, Bandits. 
Kindvall, Frank J., Columbus raid. Mar. 10, 191 6, 

Villistas. 
Kendall, Wm., Hostolipaquilla, Oct. 13, 19 13, Unknown 

bandits. 
King, Near Tampico, 191 4, Carrancistas. 
Klesow, John, On board S. S. California, Apr. 11, 191 3, 

Mex. policeman. 
Kraft, Anthony, Brownsville, 191 5, Mexican raiders. 
Krause, Emil Alex., Novillas, Tampico, Dec. 12, 1910, 

Unknown bandits. 
Klewson, John C, Guaymas, 191 5, Unknown bandits. 



APPENDIX 255 

Lawrence, Albert H., Near Tampico, 191 4, Carrancis- 
tas. 

Lane, D. J., Vera Cruz, Apr. 24, 19 16, Mexican fed- 
erals. 

Lauhel, Porfirio, Nuevo Laredo, 191 3, Unknown 
bandits. 

Lawrence, James O., Tampico, Mar. 22, 191 2, Mexican 
officer. 

Lindsley, Lee, Near Minaca, 1916, Carrancistas. 

Littles, Steven, 1916, Unknown bandits. 

Lockhart, John R., Durango, Nov. 11, 191 1, Indians. 

Maderis, H. F., Cumbre Tunnel, Feb. 4, 1914, Bandits. 

Maguire, Geo. R., Alice Road, 191 5, Bandits. 

Mrs. Mallard and baby. Near Tampico, 1914, Carran- 
cistas. 

Martin, C, Vera Cruz, Apr. 21, 19 14, Federals. 

Martinez, Lucianao, Tampico dist., 191 3, In battle. 

Martinetto, A., Cumpas, 191 5, Villa soldiers. 

Mathewson, A., 191 2. 

Meredith, R. W., Mexico City, Feb., 1916, Unknown 
bandits. 

Miller, Chas. DeWitte, Columbus raid. Mar. 10, 1916, 
Villistas. 

Miller, Morton, South of Tia Juana, Jan. 28, 1914, 
Federal soldiers. 

Miller, C. C, Columbus raid, Mar. 10, 191 6, Villistas. 

Milton, Chas., Sonora, 1915, Huerta followers. 

Moreys, J. 1., Cumbre Tunnel, Feb. 4, 1914, Bandits. 

McBee, Albert T., Brownsville, 191 5, Mexican raiders. 

McClellan, James B., Rio Chico, Durango, Mar. 10, 
1 91 2, Unknown bandits. 

McConnell, Herbert, Ojo de Agua, 1915, Mexican 
raiders. 

McCoy, J. P., Santa Ysabel, Jan. 9, 1916, Bandits. 



256 APPENDIX 

MacDonald, Maurice, San Pedro de las Colonias, 1914, 

Federal soldiers. 
McCutcheon, E. J., Cumbre Tunnel, Feb. 4, 19 14, 

Bandits. 
McDonald, W. H., Pachuco Hidalgo, June 4, 191 1, 

Unknown bandits. 
McGregor, Don., Minaca, Apr. 11, 1916, Villistas. 
McHatton, Richard, Santa Ysabel, Jan. 9, 19 16, 

Villistas. 
Mcintosh, Walter, Tampico, 191 5, Carrancistas. 
McKane, Dr. E. S., Near Brownsville, 191 5, Mexican 

raiders. 
Mc Kinney, Arthur, 35 miles south of Columbus, 191 6, 

Villistas. 
McKinsea, Near Agua Prieta, Sept., 1912, Rebels. 
McManus, J. B., Mexico City, 191 5, Zapatistas. 
Moore, J. J., Columbus raid. Mar. 10, 191 6, Villistas. 
Morris, J. L., Cumbre Tunnel, Feb. 4, 1914, Bandits. 
Mc Kinney, Patrick, Mexico City, 19 14, Bandits. 
Newman, George, Santa Ysabel, Jan. 9, 1916, Villistas. 
Nieverdalt, Sgt. John, Columbus raid. Mar. 10, 1916, 

Villistas. 
Nixon, Edward L., Near Tampico, 1914, Carrancistas. 
Olsen, Seffer, Near Cuemavaca, Apr. 26, 191 1, Zapa- 
tistas. 

(Formerly professor in the University of Cali- 
fornia.) 
O'Neill, James, Near Ninaca, 191 6, VilHstas. 
Parks, Samuel, Vera Cruz, May 6, 191 4, Soldiers under 

General Maas. 
Parker, W. and wife, Hachita, N. Mex., June 26, 19 16, 

Mexican bandits. 
Patrick, Glennon, Alamo, Lx)wer Cal., June 11, 191 ^ 

Federal soldiers. 



APPENDIX 257 

Pearce, W. D., Santa Ysabel, Jan. 6, 191 6, Villistas. 
Percy, Rufus E., Vera Cruz, Apr. 22, 1914, Federal 

soldiers. 
Parmenter, John Glen, Guadalajara, 191 5, Unknown 

bandits. 
Pearson, Geo. P., Western Chihuahua, Jan. 12, 1916, 

Gen. Rodriguez. 
Peterson, Near Panuco, 19 14, Carrancistas. 
Pederson, Peter, Vera Cruz. 
Pelham, Oscar, Sta. Gertrude's mine, near Pachuco, 

Sept. 14, 191 1, Mexican rebels. 
Pope, Elbert, Lower California, June, 191 1, Bandits. 
Poinsette, George, Vera Cruz, Apr. 21, 1914, Federal 

soldiers. 
Powdexter, William, Chihuahua, 1 9 1 5 , Mexican civilians. 
Price, Scott, Mexico, Sept. 16, 19 12, Unknown bandits. 
Pringle, Chas. A., Santa Ysabel, Jan. 9, 1916, Villistas. 
Reid, James M., Mexico City, Nov. 20, 1910, Mex. 

policeman. 
Ritchie, A. C, Columbus raid. Mar. 10, 191 6, Villistas. 
Robertson, Wm. C, Mazatlan dis. Sinoloa, 191 3, 

Rebels. 
Robinson, E. L., Santa Ysabel, Jan. 9, 1916, Villistas. 
Rogers, Glen Springs, May 6, 19 16, Mexican raiders. 
Romero, M. B., Santa Ysabel, Jan. 9, 1916, VilHstas. 
Roth, Near Tampico, 19 14, Carrancistas. 
Ross, Mrs. Chas. E., Chihuahua, 191 5, Bandits. 
Root, Morris, Nuajoori, Tepic, Sept. 2, 191 3, Unknown 

bandits. 
Russell, Herbert, Near Durango City, Sept. 29, 19 12, 

Mexican rebels. 
Sandanel, Jesus, Near Brownsville, Feb. 10, 1915, 

Mexican soldiers. 
San BIaz, Joseph T., Sinaloa, 191 5, Indians. 



258 APPENDIX 

Sanchez, Encarnacion, Mexicali, 1913, Federal soldiers. 

Sawyers, Guy S., Monterey, 191 4, Constitutionalists. 

Schubert, Guido, 1913, Orozco rebels. 

Scott, Peter, Near Nogales, 191 5, Unknown bandits. 

Shaffer, Ernest, Ojo de Agua, Texas, 191 5, Mexican 
raiders. 

Schofield, Bernard, Cumbre Tunnel, Feb. 4, 1914, 
Villistas. 

Schmaher, J. F., Vera Cruz, Apr. 21, 191 4, Federal 
soldiers. 

Seffer, Pehr. O., Cuemavaca, Apr. 29, 191 1, Zapata 
rebels. 
(Probably same as Seffer Olson, listed under "O".) 

Slate, Henry, South of Nogales, Nov. 12, 191 5, Un- 
known bandits. 

Seggerson, Chas., Juarez, 191 3, Unknown bandits. 

Shepherd, John W., Guanajuato, Aug. 10, 1912, Un- 
known bandits. 

Shope, Wm. Henry, Near Medina. 

(Shope is given in list of killed in 19 10.) 

Simmons, Albert F., Near Torreon, Jan. 15, 191 6, 
Villistas. 

Simmons, R. H., Santa Ysabel, Jan. 9, 1916, Villistas. 

Simon, Corp. Paul, Columbus raid. Mar. 10, 19 16, 
Unknown bandits. 

Smith, Escalon, Mar. 27, 1912, Unknown bandits. 

Smith, C. A., Vera Cruz, Apr. 22, 19 14, Mexican 
federals. 

Smith, Frank, Tampico, 191 4, Mexican federals. 

Smith, J. P., Near Matamoros, 191 5, Unknown bandits. 

Smith, John and five other Americans, Panuco River, 
near Tampico, May, 191 5, Mexicans. 

Spillbury, Ernest, Pachuca City, Dec. 31, 19 12, Mexi- 
can civilian. 



APPENDIX 259 

Shell, Benj., Near Minaca, 1916, Carrancistas. 

Soto, Pablo, Mexico, Mar. 24, 191 3, Unknown bandits. 

Squires, C. A. L., La Colorado, 191 5, Indians. 

Stell, Dr. A. T., Near Guerrero, 19 16, Villistas. 

Stepp, H. W., Durango, June 18, 1912, Mexican rebels. 

Stevens, William J., Pacheco, Chihuahua, Aug. 28, 
19 1 2, Unknown bandits. 

Strauss, H. L., Cuautia, Morelos, Aug. 11, 1912, Un- 
known bandits. 

Stream, A. S., Vera Cruz, Apr. 22, 19 14, Federal sol- 
diers. 

Stubblefield, Henry, Progreso, 191 5, Carranzistas. 

Summerlin, Rudolph, Vera Cruz, Apr. 24, 191 4, Federal 
soldiers. 

Smith, Baron, Mexico City, Feb., 191 5, Carranza 
soldiers. 

Joseph, Tays, San Bias, near Sinaloa, Sept. 5, 1914, 
Carrancistas. 

Taylor, James E., Vera Cruz, 191 5, Unknown bandits. 

Taylor, S. E., April 28, 191 2, Unknown bandits. 

Teanhl, Gilbert, San Luis Potosi, 191 5, Unknown 
bandits. 

Thomas, A. E., South of Nogales, Feb., 1916, Rebels. 

Thomas, John Henry, Madera, Chihuahua, 191 3, 
Federal soldiers. 

Thomas, Robert, Madera, Federal soldiers. 

Urban, Richard, Sonora, 191 5, Unknown bandits. 

Valencia, Jose, Mexicali, 191 3, Unknown bandits. 

Vandenbsh, Walter, Durango, 191 5, Mexican civilian. 

Varn, Grover V., Durango, 191 6, Villistas. 

Vergarra, Clemente, Piedras Negras, 191 5, Unknown 
bandits. 

Waite, W. H., Ochotal, Vera Cruz, Apr. 4, 1912, Bandits. 
(Beheaded when he refused to pay money.) 



26o APPENDIX 

Wadley, Charles, Santa Ysabel, Jan. 9, 19 16, Villistas. 

Walker, W. R., Columbus raid. Mar. 10, 1916, Villistas. 

Wallace, W. J., Santa Ysabel, Jan. 9, 1916, Villistas. 

Ward, Frank, Near Yago, Tepic, Apr. 9, 191 3, Unknown 
bandits. 

Warren, James L., Tampico, 191 5, Carranza Colonel. 

Warwick, William S., Juarez, 191 5, Shot from across 
river. 

Watson, C. R., Santa Ysabel, Jan. 9, 19 16, Villistas. 

Watson, W. L, Vera Cruz, Apr. 22, 19 14, Federal 
soldiers. 

Webster, John E., Cumbre Tunnel, Feb. 4, 19 14, 
Bandits. 

Weinger, Thomas, Mapami, Durango, Oct. 2, 191 3, 
Rebels. 

Wells, Edward F., Near Vera Cruz, 191 5, Unknown 
bandits. 

White, Hostolipaquilla, May, 191 4, Unknown bandits. 

Williams, Hostolipaquilla, May, 19 14, Unknown ban- 
dits. 

Williams, John H., Nacosari, Mar. 8, 191 3, Rebels. 

Williams, Lee, Cumbre Tunnel, Feb. 4, 19 14, Ban- 
dits. 

Williams, Robert, Mexico, Sept. 16, 19 12, Unknown 
bandits. 

Williams, John, Sonora, 191 5, Indians. 

Willis, M. K., Calexico, Lower Cal., July 17, 191 1, 
Federal officer. 

Wilson, John, Near Esperanza, May, 191 5, Indians. 

Windham, W. S., Tepic, 191 5, Unknown bandits. 

Windhaus, Leo. C, Mercedes, Texas, 191 5, Unknown 
bandits. 

Wiswall, Corp. Harry, Columbus raid, Mar. 10, 1916, 
Villistas. 



APPENDIX 261 

Wolf, U. G., Northern Sonora, June 16, 1913, Unknown 

bandits. 
Wood, Near Tampico, 1914, Carrancistas. 
Woon, J. W., Santa Ysabel, Jan. 9, 1916, Villistas. 
Wallace, Walter, Rosario Sta., Tepic, Apr., 5, 1916, 

Bandits. 

(Body taken to Mazatlan and buried under super- 
vision of American Consul Alger.) 

In addition 43 Americans, whose names are not given, 
are known to have been killed at different places in 
Mexico. In this number of 43 are included the thir- 
teen American soldiers and two officers killed at Carri- 
zal by Carranza soldiers, June 18, 19 16. 

VICTIMS OF CUMBRE TUNNEL HORROR, FEBRUARY 4, I914 

Mrs. Lee Carruth and 5 J. I. Morris 

children E. J. McCutcheon 

M. J. Gilmartin Bernard Schofield 

Patrick Kelly John E. Webster 

H. F. Maderis Lee Williams 

LIST OF MARINES SAID TO HAVE BEEN KILLED AT VERA 
CRUZ, APRIL 24, I914 

Louis Frank Boswell Rufus Edward Percy 

Francis P. De Lowry George Poinsette 

Frank Deverick John F. Schumacher 

Elzie C. Fisher Chas. Allen Smith 

Lewis Oscar Fried Albin Eric Stream 

E. H. Frolichstein Randolph Summerlin 

Daniel A. Haggerty Walter L. Watson 

Dennis J. Lane C. G. De Fabir 
Sam Martin 



262 



APPENDIX 



SANTA YSABEL 

Maurice Anderson 
A. H. Couch 
Thos. M. Evans 
Alexander Hall 
H. C. Hase 
Thomas Johnson 
J. P. McCoy 
Richard McHatton 
George Newman 



MASSACRE, JANUARY 9, I916 

W. D. Pearce 
Chas. A. Pringle 
E. L. Robinson 
M. B. Romero 
R. H. Simmons 
Charles Wadley 
W. J. Wallace 
C. R. Watson 
J. W. Woon 



COLUMBUS RAID, MARCH 10, I916 



Mrs. Milton James 

W. A. Davidson, Nat'l 

Guard 
J. T. Dean, civilian 
J. J. Moore, civilian 
C. C. Miller, (?) civilian 
John Nievergelt, Band 

Sergt. 
Harry Wi swell, Corp. 

Troop G 
Frank T. Kindvall, Troop 

K 
Fred Griffin, Troop K 

Total number 



Dr. H. M. Hart, Veterinary 
W. T. Ritchie, civilian 
C. Dewitt Miller, civilian 
N. R. Walker, civilian 
Mark A. Dobbs, Sergt. 

1 3th Cav. 
Paul Simon, Band 
James Butler, Private 

Troop F 
Harry Davis, Co. K, Nat'I 

Guard 



of victims, ^ 



CARRIZAL, JUNE 1 8, I916 

Lieut. Henry Adair, Capt. Boyd and thirteen American 
negro soldiers whose names have not been made 
public. 



APPENDIX IV 

The following list of 6i outrages committed in the 
oil regions of Mexico alone in a period of 6 months and 
8 days from January 23 to July 31, 1918, was pubHshed 
in the New York Times of October 20, 1918. The oil 
regions offer the most inviting field for robbery at 
present because they are about the only place in Mexico 
in which industry is active. The list includes 10 mur- 
ders. The total loss by robberies in which specific sums 
are mentioned is ? 107,507. Instances in which specific 
values were not ascertained are not included. 
1918 

Jan. 23. — Five soldiers held up Territas Blancas sta- 
tion of the East Coast Oil Co., beat Paul 
Schultz, pumper, with pistol, shot both him 
and boy helper and attacked Mexican 
woman. 
Feb. 6. — Bandits entered Naranjos and made off with 
16 mules worth ?3,ooo and 3 horses worth 
$700 belonging to the Aguila Co. 
Feb. 8. — Gang of 1 50 men swept into camp of Station 
A, East Coast Oil Co., took everything in 
commissary, supplies, blankets and bedding 
and demanded $10,000. 
Feb. 12. — Attacked Ed House, paymaster of the Texas 
Co., on Chijol Canal, just out of Tampico. 
Fired on launch, wounding a launch boy. 
House and assistants gave battle and got 
away. 

263 



264 APPENDIX 

Feb. '15. — Armed Mexicans held up camp of Freeport 
and Mexican Fuel Oil Co., at Camalote, 
carrying off Lonnie Morris, a driller, holding 
him for ?i ,000 ransom. Morris finally freed 
without payment being made. 

Feb. 19. — Launch Thendra, carrying F. C. Laurie, 
^ attacked in Chijol canal and riddled with 

bullets. Boat property of the Cia. Metro- 
politana de Oleoductos S. A. 

Feb. 21. — Launches Thendra and Houp-La attacked 
in Chijol canal. Pilot and one passenger 
wounded. 

Feb. 21. — Horconcitas camp of Mexican Gulf Co., held 
up and pumper robbed of J329. This is 
34 miles from Tampico. 

Feb. 21. — Ed House, paymaster, the Texas Co., killed 
and 14,000 pesos carried away by armed 
Mexicans with Federal army equipment and 
rifles. Dr. Brisbane and Paymaster Minnett 
both wounded. Forty men in attacking 
gang. Hold-up in outskirts of Tampico; 
party taking money to pay off workmen. 

Feb. 22. — The Texas Co.'s Obando camp robbed of 
2,500 pesos; several shots fired. 

Mar. I. — Bandits ran workmen of Tierra Amarilla 
camp, the Aguila Co. out into brush and 
took supplies and $175. 

Mar. I . — Bandits entered Potrero and made off with 
property worth close to $1,000. 

Mar. 5. — Oil camp at Tepetate held up and $1,340 in 
gold and currency taken; bandits wore uni- 
forms of soldiers. 

Mar. 7. — Bandits again raided Potrero, robbing every- 
one from superintendent to Chinaman. 



APPENDIX 265 

Losses of Aguila Co. and men estimated at 
about ^2,000. 

Mar. 15.— Made second visit in month to Camalote; 
took everything in sight. Subsequent raids, 
in which two men were hanged to derrick, 
compelled evacuation of camp. Property 
of Freeport & Mexican Oil Corp. 

Mar. 16. — ^Armed Mexicans rob camp foreman of the 
Texas Co. at Topila and hold up train. Con- 
siderable loot taken. 

Mar. 28. — Launch Crotes with vice-president, general 
manager and employees of the Cortez Oil 
Corp. left Tampico with $32,125 on board. 
Held up by nine bandits. Federal soldiers 
finally ran them off, but stole part of the 
money the bandits dropped. Company's 
loss $12,007.67. 

Mar. 28. — Bandits entered Potrero, Aguila company, 
taking money and property worth $1,000. 

Mar. 28. — Bandits again entered Tierra Amarilla, tak- 
ing property worth about $4,000 including six 
mules. 

Apr. 6. — Production camp, Texas Co., robbed; loss 
several hundred pesos. 

Apr. 7. — Repeated performance of day before. 

Apr. 12. — Armed bandits entered camp at Tepetate, 
beat employees cruelly and made off with 
$323 in money and much property; men 
lined up before armed squad during ransack- 
ing process. 

Apr. 13. — Four men in uniforms of soldiers raided 
camp of the International Petroleum Co., 
shoving gun into side of A. J. Kirkwood. 
Assistant beaten with machetes and squad 



266 APPENDIX 

of employees taken out with threats of 
execution. 

Apr. 1 6. — Employees of Mexican Gulf Co., finally 
forced out of Tepetate district after series 
of robberies and barbarities. Did not re- 
turn to work for two weeks. 

Apr. 1 8. — Tepetate Pipe Line pump station, 65 miles 
from Tampico, raided and looted by bandits. 

Apr. 18. — Theodore Rivers, Texas Co., employee, 
robbed of watch and money. 

Apr. 18. — Motor barge Alma R., Texas Co., held up in 
Chijol canal and several thousand pesos 
taken; threatened lives of men on board, 
thinking pay-roll was hidden. 

Apr. 19. — Superintendent of La Corona Co., at Topila, 
and his wife robbed and mistreated and 
driven out toward Tampico. 

Apr. 23. — San Pedro camp of the Aguila Co., raided by 
bandits, who "requisitioned" J 1,340 from 
cashier. 

Apr. 24. — Station B, East Coast Co., Topila, raided 
and employees robbed. 

Apr. 25. — Two armed Mexicans entered pump station 
of the Aguila Co., at Bustos, and robbed 
everyone in sight. Demanded and got a 
note to their chief, saying that they had 
done a clean job, leaving nothing. 

Apr. 26. — Same two Mexicans entered Santa Fe camp, 
of La Corona Co., threatened to shoot cashier 
and made off with $475. 

Apr. 27. — Armed Mexicans again dashed into Sante Fe 
camp, shot up the place promiscuously, se- 
cured $375 and disappeared. 

May 6. — J . N . Scott attacked near Tepetate camp and 



APPENDIX 267 

severely cut with machetes and daggers. 

Earl Boles and Ted Nabors, who went to his 

assistance, also attacked. 
May 6. — ^Armed Mexicans broke into Santo Tomas sta- 
tion, Aguila Co., and robbed station engineer 

of personal effects and money worth J500. 
May 12. — Armed Mexicans robbed camp of everything, 

making drilling impossible for a week; La 

Corona Co., victim. 
May 12. — Soldier got drunk and went to sleep in tent; 

other soldiers finding "body,*' declared he 

had been murdered and were getting ready 

to lynch superintendent when drunken man 

was awakened. 
May 16. — Paymaster of Cortes Oil Corp., held up by 

pirates off island of Juana Ramirez in Tamia- 

hua Lagoon; payroll equivalent to ^510,547.50 

in U. S. coin taken. 
May 16. — Launch R. C. Holmes of the Texas Co., held 

up and robbed of 30,000 pesos in Tamiahua 

Lagoon. 
May 17. — Rex Underwood stood off gang of armed 

Mexicans with revolver, refusing to give up 

valuables. 
May 22. — Rex Underwood fired upon from ambush; 

forced to desert horse and $1,040 tied in 

sack to pommel of saddle. Saved life by 

taking to bush. 
May 18. — Tepetate station, Mexican Gulf Oil Co., 

again held up and robbed. 
May 20. — The sum of J 103 in Mexican gold currency 

was stolen by bandits from the camp office 

of the Cia. Metropolitana de Oleoductos 

S. A. at lot No. 9 Tepetate. 



268 APPENDIX 

May 33. — Armed Mexicans entered Santa Fe camp of 
the La Corona Co., and demanded $20,000 
otherwise they would burn the house of the 
superintendent. They took the contents of 
the safe, $456.60, and went away. 

May 23. — The same men visited Topila camp. La 
Corona Co., and requisitioned from the 
camp boss all his and his wife's personal 
belongings. 

May 26. — ^Armed men return to Santa Fe camp. La 
Corona Co., claiming again the 20,000 pesos, 
searched all camp houses and went away with 
$532 and clothes of employees. 

May 29. — The same men overrun camp again and 
took $156, being the amount in the safe, as 
well as food supplies. 

June I. — The men entered the camp at night and 
robbed superintendent and his wife of all 
personal belongings. 

June 5. — ^Transcontinental de Petroleo S. A. paymas- 
ter at Amatlan lost during temporary ab- 
sence 6,000 pesos. 

June 8. — ^Armed Mexicans returned to La Corona Co., 
camp during full daylight and took away the 
money for the weekly payroll, amounting 
to about 2,000 pesos at Santa Fe camp. 

June.. 8. — ^At3.i5 p.m. four armed -Mexicans rode into 
camp at East Coast Oil Co., Torres Terminal, 
and demanded payroll money. The payroll 
having been sent up to terminal by the 
paymaster in the launch, had arrived at the 
terminal about thirty minutes before the 
holdup took place. The men secured 
$1,542.65 Mexican gold currency. None of 



APPENDIX 269 

employees was molested because money was 
surrendered immediately upon demand. 

June 9. — Robbers broke into the Aguila Co., office 
at Tepetate and forced open the cash drawer, 
stealing S967 in money. 

June 12. — During the encounter between the govern- 
ment and reactionary forces the camp office 
of Cia. Metropolitana de Oleoductos S. A. 
at Palo Blanco was ransacked and the sum 
of $1,100.81 Mexican gold currency was 
stolen, in addition to a considerable quantity 
of material and commissary supplies. 

June 24. — On the night of June 24 the Mexican Gulf 
Oil Co.'s, large earthen storage oil reservoir 
at Tepetate set afire. Contained about 
150,000 barrels of fluid. Approximately 
80,000 to 90,000 barrels of fluid burned or 
lost by reason of this fire. 

June 26. — One of the Texas Co.'s employees was 
robbed near Topila, but fortunately had 
only a few dollars with him. 

June 27. — Foreign employees run out of Palo Blanco 
after a regular battle. 

June 28. — Two employees of Aguila Co., attacked on 
road and left for dead, being shot and 
hacked with machetes. 

June 29. — Five armed men robbed Mexican Gulf Co. 
terminal four miles above fiscal wharf at 
Tampico. Four men, all Americans, mur- 
dered. 

June 30. — Topila superintendent of La Corona Co. 
taken away and held for ransom. 

July 30. — A. W. Stevenson, camp cashier of the pipe 
line camp of the Texas Co., at Tepetate,^ 



270 APPENDIX 

was murdered by bandits upon his refusal 
to open his safe and deliver its contents. 
July 3 1 . — Mexican Gulf paymaster held up and robbed 
of J8,ooo Mexican gold within four miles 
of Tampico. No lives were lost in this 
holdup. 



THE END 



31I.77 



LIBRARY OF CONGRESS 



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